I would try removing the drive, restarting and let windows 'find' it again.
Go to system propertie-device manager-cd-rom select the Phillips CD/RW, then click the remove button at the bottom, restart windows and, hopefully, the 'found new hardware' box will come up, just follow the instructions. This is how it's done in w98, I'm sure it will be similar in xp.
Of course, you may be right and the drive has died, but it's worth trying.
Hope this helps.