Deleting Arcamania 2 shouldn't affect the computer in the way you describe. So I'm at a loss as to what could have caused the problem. Have you gone into your sound/volume control (usually found next to the clock in the bottom right of the screen). I may be that when the program was run, it changed the sound settings. As for the CD/DVD reader; Ccan you see the icon or the CD/DVD when you check in My Computer? If not then it may be that the cable connecting the CD/DVD to the motherboard has become loose. It's always worth checking your cable connections; but make sure you disconnect the computer from the power before opening up your computer; also, it's advisable to ground yourself to ensure that any static has been discharged. This can be accomplished by touching something like a central heating radiator, but ensure you touch an exposed bit o metal. Don’t worry, that is just a precaution.
The fact that it reds probably means the icon will be visible and that the cable is okay, but it could be partially disconnected.
The next thing would be to do a repair install of windows.
I think all you need to do is insert your windows disc into the drive and choose install. A menu with the option to repair your windows installation should pop up; but it's been quite some time since I did this so I would strongly advise you to do a little research on the net first using windows repair or repairing a windows install as key words (or some similar) I'm sure there will be others who can elaborate on what I’ve said.
It's just occurred to me that you could check to see if your CD/DVD is working properly by continually pressing the delete button when you first turn the computer on. This will take you into the bios set up window, which looks like very early windows program. Here you are able to see what hardware items are plugged into your computer. If it shows the CD/DVD then it's almost certainly connected and you shouldn't have to other opening up the computers casing; though I'd still recommend you do this occasionally just to clean out the accumulated dust inside the case as dust can build up around the cpu's heat sink, which can cause the cpu to eventually overheat. A soft brush is useful for dislodging the bulk of the dust. I can assure you there will be a surprisingly large amount of dust around any fans you'll find as well as a liberal dusting every where. I use one of those canisters of air to blow away most of the dust; they are very effective, though you can use your own breath; just be careful that you don’t accidentally spit or sneeze on the components due to the dust (lol)
I hope the above has helped.
Regards
Stephen