I know this is an old thread, but I think I know what the problem was.
When you unzipped the file you mentioned, it created an 'autorun.inf' file which contains something like:
[autorun]
OPEN=ACE95.EXE
ICON=???.ICO
So, when you double click the C-drive from My Computer folder, you're actually executing C:\ACE95.EXE instead of opening your C-drive folder. (You can verify this by right click the C-drive from My Computer folder and see the bolded text, which is the default action when you double click, is 'AutoPlay' instead of the normal 'Open'.
In order to resolve the problem, simply delete the file 'c:\autorun.inf'. Or, if you think it's cool to have your own icon for your C-drive, you can edit autorun.inf file, remove the line 'OPEN=ACE95.EXE' and change the ICON=???.ICO to refer to your own icon.
I hope this helps. Kadir.