Run the Auto Play Repair Tool (Line 234)
http://www.kellys-korner-xp.com/xp_tweaks.htm

The Autoplay feature may not start the correct Autorun command from a CD-ROM or a DVD-ROM

Check your settings here: Control Panel/Administrative Tools/Services/Shell Hardware Detection/Return this service to Automatic.

Enable CD AutoPlay for Pro or Home (Line 10)
http://www.kellys-korner-xp.com/xp_tweaks.htm

If you are using TweakUI/My Computer/AutoPlay
http://www.microsoft.com/windowsxp/pro/downloads/powertoys.asp

Many users have solved this issue by removing the AutoPlay Handlers. Details provided here:

More information here under AutoPlay Enable
http://www.kellys-korner-xp.com/xp_a.htm#enable