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I agree that there MIGHT be an issue here, but a bit more troubleshooting is required.Just got a new refurb Imac core 2 duo from Apple and it has the combo drive a Ma****a cw-8124.
Unfortunately it does not want to read any type of CDR CDRW DVDR or DVDRW.
First off, it's perfectly natural that a combo drive wouldn't read DVD-R/RW (or +R/RW) -- it's a combo drive, it doesn't burn to that media at all.
Second, when you say it "doesn't read" CD-R/RW, do you mean it doesn't show up as blank media in the Finder? Do you mean there is something already recorded on it as a finished session and it's not appearing on the desktop?