It seems to me that your PRAM (Parameter RAM) is fscked. What you need to do is hold down the command (apple) + option + P + R keys simultaneously, and you must do that right after the computer is turned on. Keep holding the keys down. The computer will reboot. Keep holding the keys down for 3 consecutive restarts. After the last restart, immediately let go of all the keys and then hold down the shift key until you see the MacOS splash screen with the text "Extensions Off". This will turn off all extensions (kind of like windows safe mode). Turn off any extensions (such as the apple USB support extension) using the Extension Manager, which is located in Control Panels. Then reboot. It should fix the problem.
If you want to get the cd out, there is a small hole just underneath the cdrom drive. Get a paperclip, straighten it out, and then put the paperclip in the hole. The cdrom drive should open up.
If you want to try to boot from the cd, just hold down the c key right after the computer is turned on.
I hope this helps.