After beating my head on the corner of the desk for a couple of days, I realized why the tour I cut to CD didn't work - Java applets don't want to run from the root directory. The tour has to be at least one directory down from the root.
Just a note to save someone else a dented forehead.
An new application named Easypano Virtual Tour EXE will be released in Febrary 2003. You will be able create standalone executable virtual tour easily. You can burn it in a CD.