ATAPI drive won't read Recovery CD

I'm trying to completely reformat the hard drive on my XPS T700r and re-install Windows 98 SE. I've already saved everything I want to save on a USB Jumpdrive (or Flashdrive, or whatever!)

 

I have the purple Product Recovery CD that came with the system (back in 2000-2001, I think)

 

I set the Bios to boot off of the Atapi CD drive, and I get all the way to the window that lets me select "Reformat Hard Drive", or something like that (it's the most extreme of the 4 options they give you). 

 

But then I get a message saying that the Recovery File can't be located, and I should make sure the disc is in the drive.  Since it's already booted from this drive, can it be a drive problem, or is it more likely a disc problem?  When I put the same disc in the CD drive of anther computer, I can't even pull up a list of the files in Windows Explorer, so that makes me think there's something wrong with the disc itself.

 

On the Dell, I do have another CDRW drive I could try to use, but how do I get the BIOS to go there for bootup?  It doesn't even show up as an option in BIOS?