I have a Panasonic SA-DK3 DVD Stereo System. I know that it won't play cd-r/rw, dvd-r/rw. it won't play anything that i burn. it says it in the book that it won't play it. what i am wondering is if there is any hack or modification that can be done so that it WILL play burned material?

No. Burned discs have different standards to pressed discs.

Pressed (ie commercial) Audio CDs comply with Red Book Standards. Burned CDRs for audio comply with Orange Book II Standards.
Unless a player is designed to support Orange Book II there's no way to get burned audio CDRs to play. These two types of disks have different reflective qualities that can not be overcome by tweeking a couple of settings on the player.

Similarly DVD-R is a different standard to DVD and the player needs to be specifically built to deal with it.