Problem with XM-1602B cdrom in Hitachi VisionBook Pro 7370...

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I got by chance a old used laptop:
Hitachi VisionBook Pro 7370 with internal cdrom Toshiba XM-1602B.

The problem is that this laptop does not boot from CD.
(there is an option for booting from CD in BIOS)

When I read cd from DOS some folders names are read with
strange worms instead of proper letters.

I upgraded bios (downloaded from Hitachi website) - it did not help
I upgraded firmware (Toshiba cdrom) - it did not help.

I opeened cdrom and checkef if there is any physical damage, and
I did not find anything.

What can couse this strange behaviour ?
Is it fault of BIOS?
Is the cdrom permanently damaged ?


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