It's pre-loaded into the on-board ROM of the drive. If you close the drive with no disc in it, it auto-runs something called "BlueBirds.exe"
Also, you can explore the contents of the ROM. Files listed:
autorun.inf
BlueBirds.exe
Drag&Burn.exe
S e t u p.exe
It will auto-run every time you close the drive without a disc in it, no matter what you do. It's annoying as all hell, so I called LG about it...
The agent I spoke with said it's actually the burning software pre-loaded into the drive's ROM. When I pressed the agent as to why they would need to do this when the software is on the included CD, he stumbled for a minute until claiming it was an "added feature." When I pressed him for full disclosure as to what this "added feature" included, he had no details and stated he could send me a document with that information. He then took my email address and said he'd have it sent to me.
To date, and mind you this was two weeks ago I called LG, I've yet to receive so much as a hello from LG...
Personally, I'm leaving that "BlueBirds" crap alone. The drive works just fine without it when using the software they provide on the CD (Nero 8, Nero Express, SecurDisc, and several CyberLink programs).