Does this drive recognize CD's when inserted?

no when a cd is inserted nothing happens,and when u click on compact disc in MY COMPUTER its says the disk needs to be formatted but it cant.

Try the Dell troubleshooter first (next):

There is a Dell interactive troubleshooter here:

http://support.dell.com/support/topi...8BB4DD83AE4609

Your drivers on on this site:

http://support.dell.com/support/down...os=WNT5&osl=EN

There is a firmware update to your drive here:

Never update a system component's firmware or BIOS revision without first troubleshooting your problem with the Dell Support web site at http://support.dell.com or speaking with a Dell Technical Support representative.

Removable Media Storage Devices

Lucky Goldstar LG 8482B 48X CD ROM

http://support.dell.com/support/down...2&fileid=89892

This is a DOS based utility. The update will create a bootable diskette that must be used under DOS (not under Windowed DOS box). This flash will update the drive's firmware to 1.06. You must remove the floppy disc and reboot the system before using the drive.If the firmware reflash fails ( e.g., system hangs, etc. ), reboot the system and try again.

If you need help with this process please don't hesitate to ask.