If you mean that you only have one DVD/CD drive on the machine and the drive no longer reads CD's correctly, then the drive is headed south.. As such, using a DVD to install the operating system is only "guessing" the drive will read it correctly.. I prefer KNOWING the drive is fully operational and will install the OS correctly.
And a new drive can be purchased for around $30 or less.
As to creating a DVD from the CD, it should be possible by just copying one to the other but you'll need to check the EULA to see whether it's LEGAL to do so.
Hope this helps.
I have a Compaq presario 2570us that has a cd/dvd rom the cd portion has failed but the DVD still works. I need to reload my OS (win XP pro) but since the cd portion will not read I need to convert the OS-CD to a DVD so I can reinstall the OS any sugestions