All files on DVD have IE icons?

After I burn a data DVD, when I look at it in windows explorer all of the
files have IE icons. If you double click them they all open up with the
appropriate program (Word, PDF reader, etc). Folders look like IE icons too.
In explorer it also says "Files currently on the CD" even thought it is a
dvd.

How can I fix this? I seem to remember it starting this when I upgraded to
IE7.

Here is a screenshot.
http://img59.imageshack.us/img59/7752/untitledkb8.jpg

Notice the different file types are all using same icon.
I used Nero to burn the DVD.