OHHHHH boy oh boy.... I got a great tale to tell here.
Okay, So I got the thing open as I said, got to the switch (had to remove the motor board as you said in your original post). and cleaned her out using the 600 grit sandpaper, gentle push back and forth on each of the two contacts. gave it a blast of contact cleaner as well. Put the cover back on. At this time I should have done a quick continuity test on the motor board to test out the switch, but i neglected to think of that. Put the motor board back on and reassembled and gave it a whirl hoping that would do it (WITHOUT putting the new laser pickup in). Nothing. Did the exact same routine.
SO! as I'm looking at the damn laser pickup in the unit (don't worry, didn't look directly at the lense!!) I notice the number on it: KSS-210B. This is the wrong motor, is it not?? That means that the guy who fixed this prior installed the WRONG DAMN LASER PICKUP into this thing. I then looked at my new one that I didn't install yet: KSS-210A. i DID BUY THE RIGHT ONE.

Super excited at this point, i carefully swapped out the pickup and fired her up.
NOTHING! :dammit: Although THIS time, the pickup didn't move at ALL. Well, except for the initial startup when it moved back into position against the switch. After that, now upon power up the pickup doesn't move pretty much AT ALL.
Dr*Audio, if you do have the time, i'd LOVE your opinion on this. I'm assuming the worst, that having this incorrect pickup in the unit mighta f'd something royally somewhere. Keep in mind that the player DID WORK with this incorrect pickup for a time, but $h1t the bed after a week or two.
What should be my next course of action? In the meantime i'm going to take out the motor board again and test for continuity just to be sure that the switch isn't screwing up or something.
OH!! Almost forgot: the lens does NOT move up and and down at all far as I can tell.