Is there a reason my dvd-rw drive won't read any dvds or dvd games? Is there some software I can install that will solve this problem? It is the only disk drive I have on this computer so just using another drive is out of the question..

Could be a simple matter of the lens needing a clean.
Best idea would be to purchase a lens cleaning disc and run it through your system.

Does it read CD's at all ?

Yes, it reads cds.. but not dvds