Your bios does not affect Windows in any way, so there is no need to worry about that.
Safe mode is not capable of writing cds, thus it will not recognize the drive as an RW type, but instead only as a standard cd drive.
Possibly I have misinterpreted your first post.
You are saying that under My Computer your cd drive appears, I understood that this was not the case from your statement:
"it doesnt show anything in the D:"
but I think I understand what you meant now.
SP3 means that it has service pack 3 installed, this should not affect the workings of any devices.
It does sound like your drive is done or possibly just broken. How did your friend install Windows? Did they use the cd drive to do it? or another method?
The file link you posted is a local file on your computer, thus I cannot access it, you will need to attach it to your next post if you think its information may be useful.
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