Well, I went back and exchanged out the cd drive with the old one, installed the software on the hard drive and then switched back to the new cdr/w drive. All is working well.
You were right in that it was hanging on something. It still is. Have not figured out what to do. Can't really see it hitting something inside (mind you I bent the hell out of the sled changing from one drive to the next and back again. I'll manage something I guess. I also have the idea to super glue the ibook piece that was on the door of the old drive to the new one just to finish it off. BTW I had to take the door off the new drive in order for it to open at all.