Hi Darren,
Good news is that if the drive works properly in CP/M then the drive works just fine, no need to bin it or get a new one!
Bad news is that you won't be able to read standard 360k floppy disks (I assume "standard" means MS-DOS formatted)
on the AltairDuino. The Altair/MITS disk format is completely different from the IBM/MS-DOS format, not compatible in
any way.
Note that the drive itself really doesn't really matter much (although 360k disks are double-sided so you won't be able to
read them on a single-sided drive), it's more about the disk controller and the operating system. Controller and OS
were very much intermingled in those days. Theoretically it would (with much effort) be possible to re-program the
controller to read MS-DOS formatted disks but even then you'd have to modify CP/M to actually work with that format.
David