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This is NOT a media problem - it is a known issue with the Magic3 chip. Do a search and you will find that it causes freezing on original store bought software as well as copies.
The easiest and fastest test is to let Kingdom Hearts loop through it's intro sequence. It will freeze, I guarantee it it.
There is a "fix" tho that only works with Original store bought games. Boot in PS1 mode (hold RESET until blue light comes on) and your originals will not freeze anymore but your DVD backups will not boot at all using this method or so I've been told.
Search the other forums and you will find that this is a very common problem with the Magic3
Yeah i think it's a chip problem because i have done tests with the original Kingdom Hearts and it freezes up during the intro movie when using my magic3 on a V7 box. Heres a link :