This happened to me when I installed my blu-ray drive. My computer would restart whenever I put anything in any of my disk drives. I had to unplug one of my other DVD drives to get it to stop restarting, so I think it was power-related.
PowerDVD itself is just a piece of crap, though. It doesn't work at all on my XP install. And I can't reinstall it because it keeps complaining that a version already is installed, even though I've removed everything Cyberlink branded from that partition. It's probably a driver issue if the computer only restarts when you run PowerDVD. You can try going into the Control Panel, then System, then the Advanced Tab, then the Startup and Recovery settings, then uncheck the box for Automatically Restart. This should show the blue screen before the computer restarts. Write down what the error is and post it here.