I want to make cd that should be system dependent.
That it shoud generate a number when cd is inserted in a cd,and on the basis of that number different passwords need to be entered.Same cd with same password should not work if inserted in some other system, It should generated new number for which new password has to be provided.
Won't happen. You can encrypt it, but you need to provide a password when doing so, you can't have it generate a new random password each time. How will you know what password it's asking for?
There are pretty complex network based encryption software that can work with user logons, per system configurations etc... that you can look at and see what they offer. The one we use at my work is CheckPoint.