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UPDATE:
I ran the System File Checker and found a file that needed to be restored, unfortunately it required the use of the CD drive that is not functioning.
The registry checked out. I removed the CD drive from the Device Manager and rebooted. The system found the Win98 disc that I had left in the drive so I thought everything was okay. I put in a data disc and found that the problem was still there and now it wouldn't read the WIN98 disc when I put it back in.
I repeated my steps to remove the drive from the Device Manager and when it found Win98, I ran the SFC again and restored the file that was needed. Rebooted, placed a data disc in and cussed -- problem was still there.
I decided to punt and reloaded the OS. When it finished, I tested and found everything working normally.
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