1. It's a worm/virus.

Read http://www.pchell.com/virus/sasser.shtml on how to remove.

2. The CDROM.

NO DRIVER IS REQUIRED FOR THE CDROM IN XP. The driver is NATIVE. However, motherboard drivers may be required which are not CDROM drivers.

-> In closing, you didn't tell the make/model of the machine so I can't comment what driver you may need. Also, this may be a lesson about XP. You can't go out on the internet with XP or XP SP1 without a firewall and antivirus. Some try and you now see the result.