It seems XP (and vista for that matter) can have issues when certain programs or upgrades are installed. The result - CD drive goes missing.
A fix that seems to work for most is editing the Filter registry keys.
- Go to Start - Run - type in 'regedit'
- Find the key: HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Control\Class
Key Name: {4D36E965-E325-11CE-BFC1-08002BE10318}
- Click file - Export - and make a backup.
- Delete the value data (NOT THE KEY) for the UpperFilters & LowerFilters
- Exit Registry & reboot.
If it doesn't work, double click the backup you made, run it, and your filters will be back.
Edit: here's a link that might be more useful to you.
http://support.microsoft.com/kb/314060/