PC doesn't show E: Drive

Right, I've dug a very old PC out of the loft for two young kids to play with. It's at least ten years old, has 64MB RAM and has Windows ME installed. But when I put a CD in, it doesn't register. When I click on My Computer, all I get is three icons: 3.5 INCH FLOPPY, LOCAL DISC and CONTROL PANEL. Nothing regards the E: DRIVE.
Also, it has two USB jacks at the back, yet when I plug in a Memory Stick, it also fails to register. Any ideas?

 

After ten years in the loft I would think the lens in the CD is probably filthy, Try cleaning it with an earbud moistened in antistatic fluid.

The memory sticks need to be formatted FAT32, not NTFS.