Well, I'll comment on the things I notice:
The penguin picture is a little pixelated, can you find (or make) a bigger version?
The font size is also way too small for a CD. I'd say make the fonts at least two times as big, if not more.
Other than that, it's looking good
The ipod definitely adds some nice and needed colour to the CD. Perhaps make some of the things in the bubble different colours, or maybe just different shades...