Good question,
I have a C600, with the same CD-RW/DVD combo drive, and it works as a charm.
I installed Linux using the drive, but I don't believe that if you'll have problems after popping it in.
To burn CD's I just added the line hdc=ide-scsi at the end of the kernel line under grub/lilo
DVD's... XINE, VLC, just to name 2
Ginux