|Did you try 'eject' from its right-click menu in 'my computer'? If by chance the optical drive open/close button is bad that should work to open it.|
When doing the paperclip thing the computer needs to be off otherwise the optical drive is powered up and will try to close the tray as you push it open.
Also, when doing that you're manually moving the drive gears so it's easy to miss the 'sweet spot'. It may take several pokes to get it right (I know, I know, 'that's what she said'.)
But even if you're successful in getting it open, as already mentioned, you need to replace the drive, although it may still read disks.