If you try booting from your CD it should work assuming that it is windows that is not reconizing your CD drive. If on boot up your PC finds your CD drive you can boot from it.
Just restart your PC and boot from your windows CD, allow it to go through to "found an old version of windows XP, do you want to repair?" click "R" and allow windows to repair. Note do not press "R" earlier than "found old win"