In order to boot the lenschanger app from a PS2 memory card you will have needed to install lenschanger to the MC on another PS2 with either the exploit or a mode chip to mc0:/BOOT/BOOT.ELF then you can boot the app after a successful install of your dev1 mode chip. Then just flash the EEPROM to the KHS-400C. As far as your laser goes, does either one of them work in your other PS2? The KHS-400C with the white ring is the older of the two just so you know. The actions your are describing is very similar to that of a PS2 with the wrong laser type. However a bad laser can do the same. Yes the two white cogs on your V9 do adjust the hight of the laser rails. I have found that on the V9 adjusting them much more then the factory settings doesnt help much. I would start by verifying which laser is working.