I have experienced this same issue, and it was a known issue with
"Alternate" CDs at the time. Have you tested any of the latest daily
releases to see if it is working yet? I just tried a daily the other day
and had issues in VMware with it, haven't had a chance to test it on a
separate desktop just yet.
** Changed in: ubiquity (Ubuntu)
Importance: Undecided => Low
Status: Unconfirmed => Confirmed
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Feisty fails to dectect CDROM
https://launchpad.net/bugs/84895
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