CD/DVD Drive error message

When you say this:

"Now from the tree view I can double click on the drive it opens but if I try to right click and select play I on the drive get the error message again? I can play the files fine."

What do mean by:
"if I try to right click and select play I on the drive get the error message"
and
"I can play the files fine"?

Oh. Well check your settings for Autoplay then: How to Configure AutoPlay Settings in Windows 7 - Windows 7

I believe you have been through most of the setting options in my link below, but just in case there is one which has not been done:
Change which programs Windows uses by default


Also, some more useful Questions and Answers:
AutoPlay: frequently asked questions

What happens when you keep <SHIFT> pressed as you put the disk in and wait a while? Error message? Or does it Autoplay?

Did you try this:

Use this option to choose which programs you want Windows to use, by default.
You can choose the programs that Windows uses by default


If a program does not show up in the list, you can make the program a default by using Set Associations.

1. Open Default Programs by clicking the Start button , and then clicking Default Programs.
2. Click Associate a file type or protocol with a program.
3. Click the file type or protocol that you want the program to act as the default for.
4. Click Change program.
5. Click the program that you want to use as the default for the file type you selected, or click the arrow next to Other Programs to show additional programs. (If you don't see Other Programs, or your program is not listed, click Browse to find the program you want to use, and then click Open. If no other programs are installed that are able to open the file type or protocol, your choices will be limited.)
   If you don't see the program you want to use as the default, click the arrow next to Other Programs to see a list of programs available on your computer
6. Click OK.