Running executables from a CD-RW

I have an NEC NR-7700A (10x, 12x, 32x) CD-RW drive installed on a Windows 2000 machine with an IWILL KA-266-R motherboard with Easy CD Creator 4.

When inserting a CD (I have tried numerous ones) I can view all of the files on the CD fine, I can read the files and copy them elsewhere fine, I can burn CDs fine. However, if I try to execute a program from the CD, Windows tries to run it in 16 bit mode and gives a general protection fault regarding something along the lines of NTVDA CPU error.
I called the manufacturer and they are sending me a new drive, but I don’t think that is the answer.

Any suggestions?