Everything looks fine from here...
You can try changing the bios version (1001 or 7502 would be recommended), but I can't understand why you're having problems. I'm using W2k and just ran a cd to check (RE2 btw) and it ran fine. You might need a aspi layer (i think you may find one at
www.aldostools.com, not sure though), but first, try setting your cdrom to the actual letter and not the option "First available" in the cdrom options. Yet before trying the aspi layer solution, try also the latest pete's cdrom plugin, i heard it can run without a aspi layer instalation. (hope not saying too much bullshit

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