You need the Windows installation CD for the type of Windows you have, i.e. XP Home Edition SP3 (or whatever you have.) If you have the right one, also write down your Windows Product Key because it will promtp you for it at one point. It's one a sticker on your PC chassis unless you bought your Windows retail and the sticker is included in the package.
Boot to the CD and once it's finished loading, it offers you some choices. ONe is "Repair using Recovery Console." This is NOT the repair we want, so instead select "Install Windows Now" After some screens and prompting, you get set of installation options. Pick the "Repair" option. Then follow the instructions. It will reboot at one point, do not let it boot to CD again, instead skip that and the repair process will start. You will be prompted for the product key at some point.
The repair should fix your boot problem but as for the disk drive, we'll just have to see.
-- Andy