The dimensions of the HP D5160 template in AudioLabel should be set to:
Left: 6 mm
Top: 6 mm
Outer Diameter: 118 mm
Inner Diameter: 41 mm
Since the dimensions of an inkjet printable disc are different for each brand, you will most likely need to adjust the Inner Diameter to match the inner diameter of the printable disc.
It's recommended that you always test print on a scrap disc before using a real disc. To get good alignment, print out a blank white disc design (with no pictures, text, or color), and make sure the "Print Borders" option is turned on when printing (in the Print dialog). This will print a black line exactly where the edges of the disc are.
Once you can see where the disc edge is, you can make adjustments in the "Edit Dimensions" area of AudioLabel. For example, if the label design is printing 2 mm to the left, you can add 2 mm to the Left dimension in AudioLabel.
Hope that helps. Please let me know if you have any other questions.