i don't quite understand what you're saying...
you performed the self-diagnostic test? and it didn't report anything wrong? or it didn't report anything wrong with the Verbatim disc but didn't eject the other 2?
if you did a fresh install of Win XP and Roxio, make sure your ASPI layers are installed properly. do a search on these forums for "ASPI".
if it didn't work in your friend's computer, sounds like a bum drive though..
and no, software generally cannot corrup a drive.