Definitely sounds like a CD-ROM problem to me. They're cheap, and easy to find, so it's also pretty easy to rule out.
If you have an old computer, rip the drive out of that, or borrow a mate/family member's computer for the drive. If the drive is ruled out as the problem, it maybe worth taking to a repair shop, if no one here can offer any more help.
Posted on Thursday, 23rd September 2010