This is just about the wierdest stuff I have ever seen a computer do... Turns out the disks weren't to blame - but the drive. The aussie iso I tested at work did the same thing as the others when I got home - It couldnt find itself. Just for trying it, I plugged in another CD-Rom drive... (12 speed, ack!) and now all my disk work perfectly...

I am installing the server from the 12 speed drive now. Better go make som coffee...