Phillips DVD Player/Recorder MPEG Playback Problems

A friend of mine had purchased a Phillips DVDR3505, which is a dvd player/recorder with mpeg/avi playback, and has had problems with it involving compatibility. It started with a different model (possibly model dvdr3300) that the audio on MPEG files would cut in and out occasionally, with the same files playing back fine on his computer. Contacted phillips support, was told to send the player in and was sent a replacement. All data on the new replacement models say that they are compliant with mpeg playback however, every one he's gotten has refused to play or even recognize standard NTSC MPEG 1 or 2. When he inserts a disc with only mpeg files, it says "disc is blank or not formatted", he has one disc with multiple mpeg files and one divx file, only the divx file is read and none of the other mpeg files even show up. If anyone knows of a way to get the mpeg playback working on this, whether through 3rd party firmware or not, please let us know. We've tried and gotten 4 replacements from phillips, none of which are working with the mpegs, please if anyone has any help to offer, let me know.