Today i bought Morrowind game of the year edition for my laptop

It is one disc and includes bloodmoon and tribunal.
It is stated on the disc 'only dvd compatible'
As this is a pc game i assume it does not mean a dvd player but instead a dvd drive, my disc drive is DVD RW, and yet when i insert the disc and click the disc drive icon in 'my computer' it whirrs around for a short while and the ejects the disc and i get a message saying
' Insert a disc
Please insert a disc into drive E: '
I push the tray closed again, it whirrs some more then spits the disc out.
I am getting nowhere by doing this.
If anyone has any ideas please let me know.
If i cannot resolve this then my money was wasted.
my drive is an Optiarc DVD RW AD-7530B ATA Device
And my OS is windows vista,
If that helps.