After trying all possible tricks to eject a jammed disc i.e. boot with the mouse button depressed, use iTunes to eject disc, try resetting the PRAM and SMC, etc. I stumbled on this bit of advice worth its weight in gold:
Just gently force a DVD into the drive by tapping it gently strengthening the tapping force until it cycles the eject mechanism mechanically.
It took a dozen taps with increasing strength but eventually my drive found itself and cycled the mechanism and accepted the new disc. It spit it out 2 sec later, but after a second normal insertion the drive has worked flawlessly.