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First thing, those "guys" that recommend using regedit are not always trustworthy. I've seen some hair-brained "solutions". Unless other more common causes are ruled out, I'd stay away from messing with the Registry as you could crater the thing and wind up re-installing XP.
The DVD is a "basic" device and my guess is that it's drivers are included with those in Safe Mode, so my theory is that some other hardware that loads in Normal Mode is conflicting with those. Meaning it's not the DVD you should be looking at, but rather something else that only comes in on Normal Mode.
Like USB devices, maybe.
Or possibly your CD/DVD burning software. Or a virutal drive like Daemon.
Check Device Manager in Normal Mode and see what it says. Also cruise Events Viewer and see if it mentions any problems with a device during Start or Exit.
Use Selective Start-up (via MSCONFIG) to turn off programs and see if you can identify the cause that way. (When the DVD starts working, you've found the problem.)
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