It sounds like the lid switch is causing your problem, if you opened the lid and shut it again the CD should spin and then start reading.
There's a quick way to check the lid switch - disconnect your DC from the power supply, undo the screws underneath the Dreamcast and remove the top cover (lid included). Find the lid switch and use a bit of sticky tape or something to hold it fully back, leave the top cover off your DC, pop a CD into your DC, plug your power supply back into the DC (don't touch anything apart from the power button switch on your DC because your unit is now live).
If the problem is still there, carefully hold the lid switch and give it a wriggle, if the signal comes and goes - it's a dodgy connection in the switch.
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