well i tried playing paper mario gc and put it in. Then when i opened it froze? do you have to download something inorder for your computer to read gc/wii cd games?
http://www.dolphin-emu.com/faq.php?cat_id=1
The majority of computer disc drives are completely incompatible with GameCube/Wii discs. You'll have to rip the disc.
Also, the ability to run from disc was taken out in a recent SVN build.