i have this problem. No clue to what/how its solved. Tried deleting the upper and lower limits from the registry, no effect.
I have heard that it can be a problem where a disk image stays mounted on the drive but this hasnt happend on mine
really pain in the ass that you cant install windows again because it wont read disks. I will be buying a new hard drive in the next week to "solve" the problem.
It could just be dead. DVD drives fail over time, I've replaced a good few in laptops particularly one day they're working and the next, kaputski. If it's for a desktop, try get a loan of one and install it and see. Dancollins, maybe try removing the drivers or getting updated ones from the manufacturers website.