1. Edjam, enabling (or not disabling) System Restore is a big mistake! It constantly monitors all file operations as well as driver and software installs/uninstalls, and makes non-intelligent backups. It could use a few gigs of your HD if you don't disable it!
2. Beerinator, what do you mean "spits out data CDs"? You mean you put a CD in, then double-click on "My Computer", then on the CD-ROM's icon, and the CD gets ejected?