Cant find CD Drive!! - different...

[mishaps]

So I recently Formatted my friends HD. (I see the red flags going off already! haha) Its a Dell Latitude, Laptop, with something like 700MHz cpu and 512 mb ram. Anyways, I installed Windows XP. I successfully installed it, I ejected the disk, and placed my Windows Service Pack 2 CD into the drive. Well, after having restarted the computer once. However, for some reason, after I put the SP 2 disk in and restarted it, for some reason the CD Drive is acting like it doesnt want to work. The light in front flickers only when you turn on the machine. Otherwise the light stays off. It is being recognized by the BIOS when I go into the Setup. However, if I disable the HD and Floppy Drive, with a XP cd in the drive, I still cant start up off of the OS disk anymore. The Device Manager doesn't find anything. I can open it with a paperclip. I have not installed any drivers onto the computer. But I would think that it's not the problem since I succesfully ejected the OS disk and inserted the SP2 disk. Dell Latitude C540/C640, not sure which. Any advice is much appreciated!! And yes, I looked at other threads, tried a few methods, to no avail.

[mishaps]

For example, I tried, as mentioned by BIOSTAT:

1. Start > Run.
2. regedit
3. Navigate to HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Contro l\Class in the Registry Editor dialog box and select the {4D36E965-E325-11CE-BFC1-08002BE10318} key, which appears as a folder.
4. Select File > Export
5. save the file to the Desktop in case you need to restore it
6. In the right panel of the Registry Editor, select the LowerFilters line, and then choose Edit > Delete. Click Yes in the Confirm Key Delete dialog box.
7. Do the same for the UpperFilters line
8. Close the Registry Editor.
9. Restart Windows.

Didn't work simply cause I dont know where the LowerFilters or UpperFilters line is. I didnt really see anything like that.
Help!