check that the jumper on the back of the cdrw is set to slave you may have to take out the drive and turn it over to see where master/slave is [generally you have three options, SLAVE or SL, MASTER or MS & CABLE SELECT or CS](if it is on the same cable as your hard drive. master if it is on its own ide cable (wide ribbon cable), make sure you have connected the cable correctly (red strand of the IDE cable should go next to the power plug).
and make sure the bios sees it on startup
should say on the black screen at boot up
Primary Master Hard Drive Maxtor (or whatever yours is)
primary slave CDRom drive.
if it doesnt then come back and let us know.
p.s. 28meg ram is a tiny ammount to run windows with. if you can, get some more memory even if its only up to 32 meg.