Ca't read any cd, dvd anymore - LG (GDR8164B) Internal DVD Drive

Try running the fix-tool provided by Microsoft on this web page

http://support.microsoft.com/gp/cd_dvd_drive_problems

If that fails then my suspicion is that either
1) the drive has failed
or more likely
2) because you don't have any DVD burning software, windows can't understand the blank DVD-RW disk. This basic packet-burning software installed with XP CANNOT write to DVD disks.

However there is a bit more to it than that - the Microsoft CD burning software (which is a cut down Roxio product) cannot co-exist with any other packet burning software (e.g. DLA, In-CD or simuilar) so if one of those is installed you have to DISABLE the MS CD burning capability on the drive settings tab. Even worse, Internet Explorer 8 is not compatible with DLA - which is included in quite a few CD/DVD suites including many of the later Roxio versions

My advice would be
1) un-install any CD or DVD burning software on the machine
2) disable the MS CD burning
3) run that Microsoft patch
4) Install some DVD burning software but DON'T install the packet writing software part of it

Note that after installing that patch you may also have to reinstall any DVD playing software