This article is from the CD-Recordable FAQ, by Andy McFadden (email@example.com) with numerous contributions by others.
Sometimes a Windows system will get into a state where it thinks that a
CD-R or CD-RW data disc is an audio CD. This is very peculiar, since the
CD-ROMs aren't "enhanced" discs with both audio and data content. In some
cases the problem only happens with a CD recorder -- a CD-ROM drive in the
same machine will work correctly -- or vice-versa.
One situation where this is reported to occur is with a JVC XR-W2080 with
v2.06 firmware (or an equivalent OEM version). If you have the Roxio UDF
reader loaded, whether manually or as part of installing DirectCD 3.x, the
problem will occur. Removing the UDF reader, either with Add/Remove Programs
or renaming \Windows\System\Iosubsys\Udfreadr.vxd, is said to fix the problem.
Another occurrence has been reported with Toast 3.7 on a Mac. If a disc
was recorded with Toast as CD-ROM/XA instead of CD-ROM, Win98 would see
the disc as audio. Win95 and WinNT worked fine on the same disc.
One user found that replacing the IDE cable made the problem go away.
Another found that using MODE-1 rather than MODE-2 helped (check the
advanced recording options in your software).
Another user got the problem to go away by uninstalling "Wavelab".
Somebody else found that the problem went away on a SCSI device when
he disabled wide negotiation and limited the data rate to 16MB/sec.