The driver date is 1/7/2001 - i wonder if i should try to update that ?
It wouldn't hurt to try. If you use the driver update facility in device manager, it will probably say there isn't one, or you could try the manufacturers website, which a Google search reveals might be LiteOn. I had a quick look and I couldn't see that model number listed in their driver downloads, but you might be able to find it with a more extensive search, or contact their customer support.
Personally, given that the drive is two years old, I would recommend a replacement. I believe that there are two lasers, one for DVDs and one for CDs (although I'm not sure where that came from, it's just something in the back of my mind), and if your DVD laser is knackered, this may explain why it still reads CDs.
By the way, the 16X to which you referred is the read speed. The write speed of your current drive is probably only 2X for DVD. The 8X I mentioned is the write speed of later drives. Replacing a drive is quite easy. Basically, you just open the PC case, after disconnecting the power, then disconnect and unscrew the current drive, and slide it out of the case. Slide the new one in, and replace the connections and mounting screws as before, but make sure the jumper (the little bit of plastic that bridges over two of a set of 8 pins on the back of the drive), is set the same as the old drive, or set it to 'cable select'. There is usually a guide on how to set the jumper stuck to the top of the drive. Pop the case back on, and power up, and it should find it's own drivers, then Bob's your Auntie's live-in lover!