I had exactly the same problem today, and thru a search was brought to this thread. Exact same radio (in a Land Cruiser), exact same error 3 problem. I was able to solve it myself, so hopefully you can do the same.
I tried method 1. push eject/load/turn the radio on/off. Nothing. Method 2. Pull the fuse for the radio, wait a few minutes and replace. Nothing. This one has worked for me in the past.
Method 3. Turn the radio off. Turn it on, while you hear the whirring noises smack the dashboard above the radio. Boom, CD's are recognized, and the eject button spit them out. Not the most scientific way of fixing, but I bet it saved me a bundle of money.
Good luck to all,
~~Andy