Don't think a badly installed mod chip would even let you boot up
Think that your playstation would start to smoke and scream "I'm going to explode".
Try downloading Clonecd and using that to backup a game, i had this problem to start off with, found out in the end that my playstation is very fussy about the type of media used as well, it loves either Intenso or Discplanet White top.
Tezzi