My DVDRW drive stopped reading/writing any DVD or CD, suddenly!
Pull the drive and try it in another system. It's the only way to be sure.
... Windows XP recognizes the drive in Explorer.
Unfortunately, all that means is that WinXP is recognizing the presence of a working drive interface. It has no way of telling if the drive mechanicals are working until you try to read or write.
And while optical drives are commodity parts now, I have found Samsung and LG to be more reliable than LITE-ON.