First of all, confirm that you're not trying to play and rip the CD at the same time.
You can do one or the other (play it, or rip it), but not both together.
If that's not the case, then...
Make sure "Digital Audio Extraction" is checkmarked in the CD plugin config
(Prefs -> Plugins -> Input -> in_cdda -> config)
And then uncheck "Use sonic engine"
Note, pre Winamp 5.3x (not 5.3x or newer):
Changes to in_cdda config only take place after restarting winamp.
If 'Use Sonic Engine' is unchecked,
then Winamp will be attempting to use the ASPI Layer instead. For this to work, place
in the Winamp root dir (eg. C:\Program Files\Winamp). This is the Ahead Software version (as used in Nero 6), and is recommended for Win2k or WinXP.
Some people have reported that this slightly older version of the
(from Nero 5.5) works for them, but not the newer one linked to above. This version should be placed in the %system% dir (eg. C:\WinNT\System32 on Win2k, C:\Windows\System32 on WinXP).
One way or another, one of them will work
If there's already a version of wnaspi32.dll in the System32 dir,
be sure to back it up first!
Please be sure to try both methods!
ie. Placing the newer Nero ASPI in Winamp dir. No joy? Remove it, and then try placing the older Nero ASPI Mgr in the System dir.
Again, note that any changes will require a Winamp restart to take effect.
Also note that ^this^ applies to Win2k/XP/2003 only!
Win9x/ME users should check/install/update either the FULL Adaptec ASPI Layer (which should already be installed by default with Windows 9x/ME) or the FULL Nero ASPI Layer. More info here