I'm assuming the CD you mention has the drivers for the xpod.
Firstly, as it's a PNP device, have you actually connected it to a USB port to see whether Windows 7 detects it?
If it doesn't, you can then unplug the device and install the drivers on the CD.
Just insert the CD into your optical drive and the drivers should install automatically.
If the installer doesn't run, leave the CD in the drive and click Start>Run, and then type D:\Setup.exe where D is the drive letter of the CD\DVD drive you're using.
When you've installed the drivers, plug the device into a USB port at the front of your computer if there are any there. If not, use the ones on the back.