CR-Rom not reading disk in drive

I'm running Win XP, SP3. When I insert a CD disk into the drive, windows displays the contents of a sub-folder in one of the user folders on the C drive, not the contents of the disk! :cry When I double click the CD icon (in Explorer or in My Computer) the same thing happens. It displays the contents of a folder and not the disk. Device manager reports the device is operating properly.

I did try to edit the registry, but there are no upper and lower filters.