Oh wait..you said you replaced the CD drive. Sorry missed that.
I really have no other ideas, sorry. That's an error I've not seen. Hopefully someone else will have a better solution.
EDIT.. One more thing. Not sure if this will help get past the problem, but MS says that this may also be cause be corrupt .cab files, so I'm wondering if a bootdisk might help you get past the problem. You may want to give it a shot...you can download an ME bootdisk here http://www.bootdisk.com/
then go into bios and set your floppy to the 1st boot device, and boot up with the disk in the floppy drive.