Yes.
But you need a model that you know will work.
Search this drive database:
http://forums.xlr8yourmac.com/drivedb/s ... vedb.lasso
There is at least one report of a DVD-RW in a Powerbook Lombard. (Mine).
I bought a stock drive and fitted it with my existing caddy.
If you are rich and lazy, you can buy one to go straight in from here:
http://www.mcetech.com