I too bought Pana BD60 , around 2 years ago. Same problem playing ahem 25GB Bluray disc. Played only a few discs, then gave up  and hardly used it at all .

After that bought a MKV Media player , using it till today.

Anyone wants to buy a hardly used  Panasonic BD60 player? Other than TS of course

Today I happen to know a fren who just got Sony bd player S380 frm Aeon 2months back. He complaint the player very sensitive can't play many of the pirated disc. I finally realized his unit is Cinavia compliance. He just played pirated Wrath of Titans & it was rejected. I know Wrath is Cinavia infected.

One of the vendor in my area complaint some of his client complaint that the player rejected many new pirated BD. culprit are Pioneer, Samsung , Panasonic (most sensitive player, no need Cinavia, just can't play pirated ) player. Now I know what is Cinavia . Thanks to you guys...

Today tested "Total Recall" and "Men In Black 3" on ahem Bluray Disk, the Cinavia watermark finally shown up on both titles.

The Cinavia affect the "Total Recall" Dolby TrueHD English track, and affect the "Men In Black 3" DTS HD Master Audio English track.
Both title pop out the watermark around 20 minutes of continuous play, and the audio is muted.

I turn off, and then turn on the system, the system resume the play from where it halted, and after 20 minute, the Cinavia warning is shown again.

So conclusion is, HTS3562/98 is affected with Cinavia on Bluray Disk.
However,  the system is playing fine on ripped media, no issue found on DLNA and USB HDD playback.
I have played ripped Total Recall, Men In Black 3, Colombiana, Moneyball, Zookeeper, Wrath of the Titans, no issue found.

I purposely download and test Moneyball and Zookeeper title from other source where I normally not download, and no issue is found.

So, like it or hate it, the Cinavia is here with every new Bluray player.
There are China made Bluray players in the market though.
Today saw a 3D Bluray player from HKV starting from RM299, with the feature on par with every branded player.
Dunno this player is affected or not.