Are you using a Via chipset? Seems a lot of people are having similar problems according to viatech.com forums. Heck, so am I. I'vew got all the cables in correctly, tried every combo of master/slave I could think of, uninstalled and reinstalled Windows, the IDE channels in device manager, changed em all to DMA If Available, changed my BIOS and checked and rechecked it.. installed Via miniport drivers.. no luck. I've got a Maxtor HD and a Toshiba DVD working properly, but my Sony 32/10/40 insists on being in PIO no matter what. The miniport drivers might help ya out, they've helped some people. According to the tool that comes with em, my burner was finally put into DMA mode, but then it wouldn't show up in device manager or My Computer. Go figure.
I'm not sure if it's XP, Via, or the burner itself, but there's some problems. My old 8/4/32 burner was stuck in PIO as well, so I'm guessing it's either XP or Via or the combo of em or some combo of hardware.. I dunno. If you fix it, send me a PM cause I'm suffering from the same exact problem as you.