I know how to physically connect the drive to the computer, but do i need drivers to install for it to play/read DVDs? I know i use DVD software program to play a DVD, but does the drive need a special driver to be able to read a DVD? or will it recognize a DVD and play it, using the appropriate DVD software installed.

ATAPI drivers are included in WinXP. No additional drivers are required. As you stated you will need a player to watch DVD movies and codecs may also be required.

>>>does the drive need a special driver to be able to read a DVD<<< Your post is a bit confusing. You need the appropriate software and codecs to enable your DVD player to read DVD's like Power DVD, etc. Some HELP in posting on Cnet plus free progs and instructions Glad to Help!

you do not need drivers to make the drive work to the point where the PC can explore the disc and show you the files etc on it and open files if they are not dvd movie files. you do need to load the codec so that windows media player can interpret the dvd movie files. If you load DVD software like Power DVD then you can watch DVD movie files with Power DVD or with windows media player as windows media player then uses the codecs that were in the power dvd installation

VLC http://www.videolan.org/vlc/

so if the DVD contains just a bunch of saved .txt, .doc, .jpg, .mpeg, .wmv etc.. files the DVD drive will be able to open them up to view the files or play the .mpeg or .wmv file without any special software/drivers. It will use the same driver that the basic cd-rom drive is also using? but if i want to watch a DVD then i will need to install a program like Power DVD. but if i want to burn a DVD, will windows media player let me burn it, or will i need to install a different DVD burning software?

WMP won't burn DVDs. The remainder of your thoughts are correct. Did the DVD drive come with any software? If so, is it a trialware or full version?