It's a strange one as CD/DVD-ROM or rewriter drives usually have two lasers, one for each medium, yet yours still reads audio CDs.
First try Removing the drive from Device Manager and then rebooting - Windows will install New Hardware and also the basic CDROM driver that is required.
If this doesn't work try temprarily disabling DMA for the CD version; another way would be the trick of booting up with the CD-ROM already in the drive.
Have you also tried My Computer>Explore and then right-clicking on the drive's icon to bring up the Windows What to Do next panel?
You could also try selecting Properties via the same route and checking the AutoPlay tab.