First when reviewing your information, your appearing to still be using a TEN YEAR OLD COMPUTER, and running XP with no service packs. Let me state, there will be no support or solutions available for such a old system, and most likely no way to 'fix it' as the connector types for that DVD model are NO LONGER PRODUCED (IDE). So even if 'replace the drive' was a solution there is no way to do so.
As I noticed as well your on XP Pro no service packs. Numerous patches and fixes were added to address many issues, and your system should install up to SP3 to resolve ANY issue. No other method would be more reliable to ensure 'compatibility'. Again though XP is no longer supported, so there is no 'software' out there to resolve this.
Lastly, considering the age of the computer, YES components (DVD, monitors, whatever) can work one hour ago then POOF no longer work because they wore out.
Given all these, your BEST and LEAST cost solution would be to either continue using the system till one day it just 'doesn't turn on anymore' OR better yet go to Walmart today, and for $249 pick up a i3Core desktop or better yet LAPTOP that will be under warranty for at least a year, then parts failure guarantee for 3 years.