Does this work for you?

You can turn off the Auto insert notification for your CD drives, and/or disable Windows AutoPlay. 
To disable AutoPlay:
1. Double-click the My Computer icon.
2. On the View (or Tools) menu, click Options (or Folder Options), and then click the File Types tab.
3. Click the AudioCD type, and then click Edit (or Advanced).
4. In the Actions list, click Play, and then click Set Default.
To reenable AutoPlay, repeat steps 1-4. In some cases you may have to actually delete the "Play" action. If you do that, note the command being issued, in case you want to add it back. You can still play CDs by manually starting up that player program.

>The only property I see on my CD/DVD properties is "Enable digital CD audio for this CD-ROM device." It was unchecked, I checked it, but still Roxio does not react when I put a new blank disk in.