This was a problem with early versions of the game that people had illegally downloaded off the internet or if the owner applied a no-cd hack to a legally purchased version. It was part of the built in software protection system.
If you have purchased the game (and I have no reason to believe you haven't) then patch it to version 1.04 and the DVD is no longer required.
If you have done the above you had better remove it (incl. registry entries) and re-install.
JCC
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