That means it's terminal.
As an aside. I've fitted numerous drives to numerous systems and the only ones that need more than standard MS plug and play drivers are lightscribe ones and that's only for the fancy image burning stuff....
Agreed, MSCDEX is the only driver you need for any DVD or CD drive (standard Windows one).
The only things left to check before you bin and start anew is that all the connections are properly made and secure (at both the CD drive end and motherboard end), try giving them a wiggle then a firm push to reseat them, also check the "jumper" (small plastic tag on the back of the drive, make sure it's alignment matches what is written on the drive and it's pushed all the way in). Make sure you EARTH yourself before touching any exposed areas of the PC, use the case chassis if it's metal.
Whilst you have the cover off the case, you may want to gently remove any dust or crap that has accumulated in your computer, I "diagnosed" a guys PC problems a while ago and it was purely because of the amount of crap and pet hair in his PC, we used gentle pressurised air to blow all the crap out!
Finally, if this still doesn't work, press DEL or F8 (depending on what your PC says) at startup to enter BIOS (Basic Input/Output System). Have a look under the drive section of the BIOS, if your CD drive isn't showing in some capacity it is kaput, the BIOS is the most basic system readout you can get on a normal PC. Incidentally do NO change any of the BIOS settings without knowing what you are doing - you could cause some damage! This picture is a sample of a BIOS screen (it's a Phoenix version) they all follow similar layout:
Basically what this screen is telling you for this system is he has a 4.3gb hard drive fitted as the master drive in channel A and a CD-ROM drive fitted as the master drive in channel B (most PCs have two channels, although some may have more). Basically, if the BIOS isn't showing your CD drive in one of the channels, its fubar.
Hope this (rather technical) post is some help mate, if you need any more info just ask.
Regards
MP