Hi,
Plemmens (the last reply) is right. Remember, Pinnacle doesn't embed ANYTHING - it just remembers where things are via links - so when you go to make a movie, it 'sucks' all the files into the movie. It can't do this from a CD that maybe isn't there anymore. (If you look at the file size of even the most complicated Pinnacle project, it will only be a few KBs.)
To insert music from a CD, use Windows Media Player (or another player than rips music) to rip the music into MP3s and store them in a folder somewhere on your computer, and preferably within your project folder. (Always, always, always have everything you are using such as video clips, pics, photos, scans, etc.) in one set of folders on the same drive, so it makes it easy for Pinnacle to find everything.)
I start with a folder called (for example) "CANARY ISLAND HOLIDAYS" and within that folder I make other folders called (for example):-
"Canary island Holidays - Project"
Canary Island holidays - Raw unedited video files"
Canary Island Holidays - Photos"
Canary island Holidays - audio & music files"
Canary island Holidays - avi & mpegs"
Canary Island Holidays - other stuff"
ETC. So BEFORE you start your project, you put copies of everything into these folders and then import them into your project. Keeps everything neat and tidy. If you use COPIES of everything (rather than the originals) then you can just delete everything to release drive space, when you've burned your video. I do most of my videos on external hard drives using this method and works fine. - just remember to do backups.
Works for me!
Cheers