We're having the same exact issue on our server 2003, looks like it's writig files, blinking and all, but no files are written to disk.. Any Suggestions? Even the log looks good:
I 12:06:34 ImgBurn Version 2.4.4.0 started!
I 12:06:34 Microsoft Windows Server 2003, Enterprise Edition (5.2, Build 3790 : Service Pack 2)
I 12:06:34 Total Physical Memory: 2,096,592 KB - Available: 1,490,272 KB
I 12:06:34 Initialising SPTI...
I 12:06:34 Searching for SCSI / ATAPI devices...
I 12:06:34 Found 1 DVD