Thanks for your bugreport.
Please remove the cdrom from the sources.list file (e.g. via software-
properties-gtk from System/Administration/Software sources) and untick
the CDROM.
When that is gone, please try again.
** Changed in: update-manager (Ubuntu)
Status: New => Incomplete
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cd rom not recognised
https://bugs.launchpad.net/bugs/366459
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