Audio CD's won't mount


I receive the error when I insert an audio CD (CD-R OR prerecorded) that tells me that this Mac can't read the volume and do I want to initialize, eject or continue. BTW, CD-ROM's & Zip discs mount just fine. Yes, I obiously have "Show mounted volumes on desktop" checked in Finder Pref's and I have read Apples Tech article on this subject. I posted a threat on Apple's discussion site and got 1 response from a guy who basically told me that clicking "continue" would get me going (WHERE?? Now it's still not mounted AND I can't eject the disc until I go into disc utilities) or to try mounting the CD while running a copy of an appropriate application such as iTunes or Toast. same results. What is wrong here?

Also, what's up with no sound in Mac OS X? I had it when I first installed and now it's silent.
I get the same error only it does that with anything I put in the computer. It even happens with img or smi files. I just hope that 10.1 fixes this.:(