Windows freezes when insert or play a CD

I am trying to install Windows XP on my newer, faster hard drive. My system is as follows:

Mobo: Asus K8N-E Deluxe
CPU: AMD Athlon 64 3000+
RAM: 2x512MB Kingston Value RAM
Graphics: XFX 6600 GT AGP 8x
Sound: Audigy 2 ZS
HDD: Western Digital 80GB SATA (new) and Western Digital 250GB PATA (current)
CD/DVD: Plextor PX-712A
Monitor: AG Neovo E-19A

Here is how I go about installing everything:
1. Format and install Windows XP
2. Install SP1, reboot
3. Install DirectX 9, reboot
4. Install Mobo chipset drivers (tried both latest from NVidia and Asus websites), install graphics card drivers (latest from NVidia website), install monitor drivers, install latest firmware for Plextor DVD drive, reboot
5. Now when I try to insert a CD or run a CD already, Windows immediately freezes as soon as the CD starts spinning!

I've tried many variations to this, all result in the same thing. I can't understand why this is happening. I am certain that it isn't a hardware problem because everything is working right now running on my older hard drive, and I suspect it is a driver problem. I have tried not installing the latest Plextor DVD drive firmware, and installing the chipset drivers from both the NVidia and Asus websites to no avail. I will probably try installing the old chipset drivers from the Asus CD next, but when I install with that the SM BUS driver doesnt install properly. I would try asking Asus customer support, but last time I sent them an email in September 2004, they didn't respond until April 2005! Does anyone have any idea what is going wrong? I would really appreciate any help with this!

Actually, the Mobo chipset drivers won't allow me to install them until after I install DirectX 9. I'm just really baffled by the problem right now, do you think this question belongs in another forum?