I highly doubt that the cable would be of any value. If there's a broken or damaged cable, he would not have very specific symptoms such as this. The drive would either be there in Windows or it wouldn't regardless of whether there is a CD in the drive or not, or the drive would just act up regardless.
I would put more on potential incompatibilities with XP and the drive that you're using. Have to tried booting off a floppy disk with CD-ROM drivers on it? If not, I would try
http://www.bootdisk.com/ and get a bootable disk with CD-ROM drivers. This way you can rule out whether or not the problem might be XP.
The only thing that the problem is most likely to be, assuming that it's not Windows XP (and we all know how much I
love Windows XP -- not), is the drive itself. When Windows boots, it makes queries to the system to determine whether or not devices are there or new devices have been added. The same goes for CD-ROM drives. It is possible that the CD-ROM drive is failing and is not properly reporting disc changes to the operating system after being queried by the system. That's a long shot, mind you, but I've seen stranger things happen with CD-ROM drives.
The first thing you should do is to rule out XP. Get a 98 boot disk with CD-ROM drivers, try booting with and without a CD in the drive, change CDs, confirm the contents, and so forth. If the CD-ROM drive works fine under DOS, then you have an XP compatibility problem. If the problem persists under DOS, I would recommend trying a different CD-ROM drive if you happen to have one.