Unfortunately the Dreamcast laser is of extremely poor quality (probably the worst in any console ever). This issue you've got is very, very common and appears to be almost inevitable.
It won't read discs that are even remotely scratched, it is incredibly sensitive. That's probably your problem - there's a 0,012 mm scratch on your disc somewhere.

Although some (a few) Dreamcasts work better. Actually, playing copied CD-R games work better than using the crappy GD-ROMs.
All Dreamcasts will surely die, hehe, but there's a pretty good emulator called Chankast. Super high-res and anti aliased Dreamcast games = pretty.