I have a D505 that crashed so I had to install everything from scratch. Everything seems to work okay except that it won't play DVDs (DVD games, DVD movies, etc.). The CD player works fine to load stuff up, etc.
I've looked at the Dell CDs that came with the laptop but can't find a DVD player. I also looked for just a codec to get Windows Media Player to play DVDs, but no luck there either. The DVD-ROM unit is the Teac DV-28E-C.
For a DVD-ROM Drive to play a DVD, Windows needs a DVD Decoder, like Power DVD, Nero Showtime,etc. You can usually find a free version of Power DVD that comes with a DVD Drive. Most Computer Shops should have a copy laying around that they can give or sell you a copy of.
You can download a free trial of PowerDVD here:
http://www.filehippo.com/download_powerdvd/583/
Sounds like you might need a New Drive then. Are you running XP Home or Pro? Regardless, the DVD-ROM should play DVDs as long as you have a Decoder like Power DVD. Have you tried Nvidia's DVD Decoder? I don't think it will help you though. It sounds like your DVD-ROM Drive is bad. I have seen these drives behave the way you describe.
I would try Nvida's DVD Decoder, if it still won't work. Replace the drive. Try an LG Drive. I've had Excellent success with LG Drives.
Link to Nvidia's decoder:
http://www.nvidia.com/object/dvd_decoder_1.02-223-trial.html This is a 30 day trial. It will allow you to see if it is software or hardware. i.e. Your DVD-ROM Drive