this sounds very much like DMA is not enabled (which is what everyone else is trying to point out, methinks). try this...

[directions taken from http://support.microsoft.com/default.aspx?scid=258757]


Method 2
You can install any version of Windows 98 or Windows Me to obtain support for DMA.

How to Enable DMA for a CD-ROM

To enable DMA for a CD-ROM:

1. If you are using Windows 98, Windows Me or a version of Windows 95 that includes DMA support, by default, DMA is available but is not enabled for your CD-ROM, and you should skip to step 2. If your version of Windows 95 does not include DMA support, use either of the following methods:

• You can install any version of Windows 98 or Windows Me to obtain support for DMA.
2. Click Start, point to Settings, click Control Panel, and then double-click System.
3. On the Device Manager tab, double-click the CDROM branch to expand it, and then double-click your CD-ROM.
4. On the Settings tab, click to select the DMA check box, and then click OK.
5. Restart your computer, and then test to determine if your CD-ROM is working properly by using the CD-ROM drive. If you determine that your CD-ROM does not work properly with DMA enabled, disable DMA. To do so, repeat steps 2-4, but click to clear the DMA check box.