The stock issue of Windows XP Home and Pro do not play DVDs. You can add this by installing VLC Player (see google) until you decide on what DVD software you want to buy.
Nothing busted here.
As to item 2, you'll have to be more specific about the music.
Device: SoundMax Integrated Digital HD.
1. I can hear system sounds and play streaming music from Internet just fine. Through Windows Media Player 11
2. I CAN'T play music or DVD through Windows Media Player 11. It shows to be playing but there is no sound.