Ok, thanks for all the replies, after typing this I'm going to try switching the connectors. I recently upgraded to SP4 don't know if that could be part of the problem. When I boot up it recognizes it, then when that dialog comes up saying it has been removed I can still eject the CD out. If the CD-RW were to be failing I don't think it would work in the first place (just my thought not sure).

EDIT: Ok, after getting a blue screen and rebooting 3 times, so far, it's working fine, I'm listening to a few songs from the CD (MP3 CD) for a while see if it disconnects.

EDIT2: Seems to be good now, thanks for all the help