What if a virus is detected on CD?

My Avira Free (but great) antivirus yelped when I tried to access a CD i'd recently created. It seems one of files on the CD, an executable freeware "neosetupfull262.exe" had a malware identified by signature TR/BHO.FlySwat.2. The file sets up Neoplanet browser. Why need any fringe browser with goodies such as Firefox and Chrome available at no cost? There is a reason - to discourage persons who go about prowling what is in my History, where I've been surfing: such nosey won't be looking for NP as a browser.
It would be safe as long as I didn't use the executable somewhere. But someone else might, and there goes flyswat and all the evil associated with it. What would you do? This is what I did:
I copied the contents of the CD except the infected file on the hard drive: no space problem, I have a half-terra external to my disposal. Next I had to put the CD to end of life. Did this by inserting it in a newspaper and snapped it. doing it with bare hands might harm, as a thousand shrapnels of incredible sharpness get formed when it gives-you don't want one of these to lodge into your cornea.