In order to transfer correctly the tracks from the CD to a portable device, you will need first to rip them from the CD to your computer. In order to do this, I recommend you use Windows Media Player. Once you open the program, insert the CD in your computer's disc drive and follow the instructions from Microsoft Support page.
After that, connect the YP-U3 MP3 player to your computer using the USB cable, open the player's drive from My Computer/Computer and transfer the files using Copy/Paste feature.
If the device is not recognized by the PC, press Windows + R key combination, type devmgmt.msc and click OK. Expand the Universal Serial Bus controllers list, right-click on the driver and press Uninstall. Reboot the PC, connect the device using the USB cable, press Scan for hardware changes icon from Device Manager and wait for Windows to retrieve the drivers.