Welcome to the Community.
That hard drive model is no longer produced as 500GB. What drivers and software are you installing? If you mean the SES Drivers and WD SmartWare, you should be able to install them even with the hard drive disconnected. I’d recommend downloading the latest versions for that particular model:
SES Driver
http://wdc.custhelp.com/app/answers/detail/search/1/a_id/5419
WD SmartWare
http://www.wdc.com/wdproducts/wdsmartwareupdate/wdsmartware.asp?id=wdfMB30_Essential&os=win
Latest Firmware for 500GB Unit (The drive must be connected)
http://www.wdc.com/wdproducts/wdsmartwareupdate/firmware.asp?id=wdfMB_Essential&os=WIN
If the hard drive is showing as a CD, then it must be the VCD from that drive’s generation. An “Unlocker” application should be inside. Does it ask for a password if you run it?