I tried Safe Mode, but it didn't show up.
However, when I inserted a WinXP install disk (which I'm not going to install, if anything it's going to be Win98SE
and entered "CR rom" as primary boot device (instead of floppy) the DVD light started flickering and the installation program popped up. I guess that's good news for the DVD drive itself?
Though it still doesn't work in Windows. Is it possible it works in DOS? And what should I do about Windows, is there some system recovery or anything that I could use in WinME?