I have not been able to "fix" the problem insofar as eliminating it, but have been able to get around it. The drive does show up in Windows Explorer but doesn't seem to know there is a disc inserted. I simply right click on the drive, select "properties" and then click on "AutoPlay". Everything shows up and is accesable then. It's not a fix but it works.

I am having exacly the same issues running Win 2k. I dont have Nero so i know its not software issue. Would like to use the above fix but there is no option for "autorun" under properties when you right click the icon in Win 2k.
After browing the web for a few days with this issue, there are loads of us with the same problem. We are all probably running different versions of windows and associated DVD/CD software so I suspect its something REALLY SIMPLE.
Anyone got any more clues.

Use other CDROM controller on the mobo(move the CDROM cable to the other connector on the mainboard).
Install the latest mobo chipset driver, reboot to take effect.

If necessary, update the mobo BIOS.

Hope this helps!
Bill

This is not an XP problem or Hardware Problem. It is definately Software Related. I havent nailed down the actual program on my Vista system yet but I think it is a clash with Itunes and Pinnacle Studio. Only solution I have found is a complete re-install. I am tired of doing this, anyone else figure it out yet?

The Left-Click Properties doesnt work for me either, it just flat doesn't see a disk.

do you get a code 39 error? if so go to utube and enter code 39 fix and follow instructions , worked for me!!