I'm having a bit of the same problem.
I bought an OEM Lite-On 832s. I am running Windows XP. If I insert a DVD, the drive reads as a "CD Drive" in Explorer. When I insert a CD, the drive seems to recognize the disk in Explorer (displays the disk name and so forth), but it cannot read any of the disk's contents. On a related note, the drive I had previously installed in that slot, which was a cd-rw/dvd rom combo drive, had the same problem. I thought (like an idiot) that if I just installed a new drive into the same slot, it would solve the problem.

The drive is installed as the master in the secondary IDE slot. It is the only CD/DVD drive I have installed. Curiously, if I go into disk management from the Computer Management program, it shows that there is a disk in the drive and how much space the disk's contents take up on the CD.

I will go through all the steps listed i n Dee-ehn's post, and will get back to you all!