W: Failed to fetch cdrom:[Ubuntu 8.10 _Intrepid Ibex_ - Release i386 (20081029.5)]
 

How do I Fix this type of problem?

I have a couple of packages in the update manager, and I attempted to installed the packages the update manager gives me this failure.

when the PC prompts me for the Ubuntu 8.10 CD it loads, but the problem still comes back.

What should be my next step?

W: Failed to fetch cdrom:[Ubuntu 8.10 _Intrepid Ibex_ - Release i386 (20081029.5)]/pool/main/l/linux-atm/libatm1_2.4.1-17.2_i386.deb

I'm puzzled that it's looking for the cd for updates. Did you change settings in Software Sources?

You can install updates from cd, but you would need to download them and burn them to cd, then use the update cd you created, not the 8.10 installer. Otherwise, updates are always installed from the internet.