Before you start the following procedure, you may want to roll your system back to the last good configuration. With your second set of troubles, it sounds like you've changed something in the registry that you shouldn't have while trying to restore the auto insert setting.
Open My Computer, right-click a drive and select Properties, click the Auto Play tab, then under Select an action to perform, highlight "Take no action" and click Apply. Select the next item from the drop-down list and repeat until they're all set to "Take no action," then repeat the process again for each drive.
If you select the registry auto insert to 0, your computer won't recognize a disk when it's inserted into a drive. With XP, it's not the proper way to disable AutoRun.
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