The error only appears on machines which do not have Shockwave Player 11 installed, and only when playing the projector from the hybrid CD or DVD. The same project placed on a USB stick or external hard drive launches and plays successfully.
This issue has been reported several times but has not been reproducible by Adobe support. The common element in the failure appears to be that the hybrid media has been created with Roxio Toast version 8 or earlier for Mac. Abobe support has tested with Roxio Toast versions 9 and 10 for Mac and has not been able to reproduce the error with those versions.
Adobe does not think that the issue is specific to the files being created by Director. The error is caused by the partition formatting created by Roxio Toast during the hybrid CD/DVD burn.
Adobe recommends testing with a more recent version of Roxio Toast. Alternatively, create the original ISO disk image on Mac OS X, move the ISO image to a Microsoft Windows machine, and create the actual media on that machine.
For additional discussion, see this Director forum thread.