CD ATAPI Incompatiblility

I am trying to install a new compact disk in an older 166Mhz, 32MB RAM DTK computer running Win95. During bootup, the computer recognizes the CD as the secondary, although it states the CD is ATAPI incompatible. I reran setup so Win95 recognizes the CD, although it failed to recognize it. I even formatted and fdisked the drive, although during bootup it still gives the ATAPI incompatible message for the CD. Could it be I need to update the BIOS for the machine? And if thats the case, wherewould I find the update?

Thanks,
Dan