Ok, sounds like consensus.

I was just over at the witcher forums and there is a 16 page thread on this "insert original DVD" problem. The FUD is strong there. Work-arounds that dont work. Its really pretty sad. I sent an email to Atari requesting a refund and will send one to gogamer tomorrow. Given that there is no deterrent to piracy with this users should be outraged. Alcohol in the registry means youre a pirate? Oddly, i have nothing like that at all. The only "questionable" thing i use is process explorer, but its not running all the time and is not the source of this error. Here is the sequence that led to a launch of witcher tonight:
1) start -> programs -> witcher....nope
2) open tray -> close tray -> auto lauch -> witcher...nope
3) move disc from DVD ROM to DVD-RW tray -> auto lauch -> witcher...nope
4) reboot -> start -> programs -> witcher....nope
5) remove disc and close tray -> move disc from DVD RW to DVD ROM tray -> auto launch -> witcher...nope
6) retry #1...nope
7) retry #3...nope
8) remove disc from tray -> close -> open tray -> put disc back in -> close -> void auto launch -> start -> programs -> witcher...success!
9)
WTF? Nothing in my rig, SW/HW changed during this sequence of guesses. How does one figure this stuff out?