Hi beemerman. The behaviour of your computer is usually caused by the Windows getting corrupted so normal startup is impossible. Windows then tries to revert to a working configuration "Last known good configuration", but in this case it can't, hence the loping behaviour. Your best bet is probably to reformat and reinstall Windows, but you can't do that if the CD drive isn't recognised.
Have you checked to see if the CD drive is recognised in BIOS - or is that what you mean?