Have a look at this: DVD/CD drive cannot read CDs
http://www.softwaretipsandtricks.com/forum/windows-xp/39123-dvd-cd-drive-cannot-read-cds.html
It mentions: Goto Control Panel->System->Hardware->Device Manager. Click on View, choose devices by connection.
Expand the ATI IDE Controller, Expand the Primary IDE Channel, Make sure ATAPI DVD A DH16AYH is listed under the expanded IDE Controller.
Double Click the Primary IDE Channel, Click on Advanced Settings Tab, Change the transfer mode for Device 0 from "DMA if available" to "PIO only", Click OK
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