Hi Trudi,
With the ATI's disabled, you can't watch DVDs, so that probably explains the drive issue.
Best as I could guess, people have been running in SafeMode/without ATI extensions since Jan/Feb when the problem was first starting to show, and are presumably still operating in that diminished mode. If you only need WP'ing, then you'll probably get by for a while.
As per my new post on the main board - EVERYONE call Apple.
Maybe we should arrange for everyone with badcaps to call Apple on the 1 day (some Powerbook users were going to do the same for a problem/s they're having).