An audio CD isn't recognised when inserted into the CD Drive and when you click on the drive icon a message saying "incorrect function" appears.
The cause of the problem seems to be when you have more than one overlying driver for the CD. That is, you have more than one installed program trying to add it's own software driver overlay, eg, a CD or DVD media creator and a program enabling accessing to Mac format discs, etc. Disabling one of these drivers should get things working. (In the specific case I found both DataViz MacOpener and Roxio Easy Media Creator running. Disabling the MacOpener driver provided full access to Audio CDs again. This driver could be enabled temporarily when it's needed.)