I have an I/O Magic IDVD16DDBE external usb cd/dvd drive that I use with my blade servers and this device is not compatible with Server 2008. If I try to do a clean install, setup asks for a driver and will not continue without it. If I install as an upgrade, the device is not recognized and con't be used after Server 2008 is installed. The manufacturer does not have a driver for it. Can anyone give me a short list of external usb cd/dvd drives that will work with Server 2008. Many thanks in advance.

You can take a look at the Hardware Compatibility List for Vista, which should be roughly the same for Server 2008. You can find the Vista HCL here: http://winqual.microsoft.com/hcl/ Just look under Storage -> Removable Storage.