first, its really weird that your drive reads only DVD's.. have you tried playing an audio or VCD?
Try using Nero's Drive Info Tool ftp://ftp6.nero.com/tools/InfoTool.zip
it detects your optical drive and double checks the features that it supports.
if CD's really wont play, and the laptop is still under warranty, i suggest you bring it to the authorized service center for repair of the optical drive.
if replacing the optical drive is not an available option at the moment, i suggest you try "WinToFlash