You're right, if there's another CD drive working on the same IDE channel and you just built the computer, chances are it's the drive or the drivers. With the CD drive being as old as it is, it may be time for an upgrade since you just built a new computer anyway, but if you don't want to buy a new one, download the latest drivers from the manufacturer's website and install them (remember to completely uninstall the existing drivers). If the problem persists, check to make sure there are no IRQ conflicts with anything. I really doubt an IRQ conflict would cause this, but it's worthwhile to check anyway since you're getting an I/O error.
Post a reply and let me know how it works out.