Create a new document Open the Elliptical Marquee Tool, and drag a circle selection in the middle of your working area. At this point you may fill the circle with the color you want, this will change the tint/color your CD obtains. Create a smaller circle inside using the same method, use the image to the left to size it up, once selected Delete.

Drag the current layer to the Create New Layer button at the bottom middle of the Layers palette to create a copy of it. Add a lighting effects filter, Filter>Render>Lighting Effects and use a high Gloss setting along with a low Material setting. This part is really up to you as you decide how much of a glare you want your CD to have. Once the Lighting Effects have been applied set the layer's blending mode to Luminosity.Your result should look somewhere near to the image to the left.

Recordable CDs will normally have an easily identifiable edge, or ring, I don't know why it it is there, but since I was using a recordable CD for reference, I'm not about to leave it out. Create a circle in the middle and remove the middle using the selection methods you used above.
Once you've finished set the layer's opacity to 30% and set the blending mode to Overlay.Your result should look similar to the image to the left.

Choose the Gradient Tool. In it's options palette set the gradient mode to Transparent Rainbow.

Place the cursor at the top in the center of the document and drag downwards past the other edge, release the mouse and and rainbow gradient will appear. Then select all.

Choose Edit>Transform>Skew from the main menu. Grab the top and bottom-left handles of the bounding box and drag them to the center. You may need to drag the upper right handle upwards more and the lower right one downwards to spread the gradient across the CD a bit more.
Use the image to the left for reference. Press Enter when you're satisfied or click Esc to cancel and restart.

Set the layer's blending mode to Overlay and add a Guassian Blur, Filter>Blur>Guassian Blur, input a setting of 10 and press OK.

Set the layer's blending mode to Overlay and add a Guassian Blur, Filter>Blur>Guassian Blur, input a setting of 10 and press OK.One way of doing this is as follows;
Drag the first gradient's layer onto the Create New Layer button in the Layer palette, and rotate the other gradients to fit nicely using the Free Transform.

Hold down your Ctrl key and click on the Create New Layer button in the Layers palette. This will add an adjustment layer, choose Hue/Saturation as the Type and make sure you check Group With Previous Layer. Click OK and the Hue/Saturation dialog box will appear, input these settings, or experiment with your own;
Hue: 0
Saturation: 25
Lightness: -27
Colorize: YesYou can download my settings here if you are familiar with loading settings.

Repeat step 8 for the upper gradient except use the following settings, or do wnload mine here.
Now Hue/Saturation layer) Use the following Levels settings, or download mine here;
Channel: RGB
Input Levels: 131 , 0.83 , 245
Output Levels: 45 , 27
Note: Step 8 and 9 are very loose, you can customize the CD as you want, these are just the settings I used.

Ctrl + Click on the original CD template's layer (the first layer we created) to access it's transparency mask. (selection) Choose Select>Modify>Expand, use and input of 4 pixels, create a new layer above all the others and fill the selection with black.Your result should look similar to the image to the left.

There are of course little subtleties that need to be added to this to make it look like a real CD, but the main effect has been achieved. Keep in mind that if you change the the the color of the first layer, the color of the CD will change with it, although you may have to change the adjustment layers' settings a bit.
Voila we have a CD!