First of all, thanks so much for all of your help.
I have tried 2.50, the guy who sold me the drive actually updated the firmware before he shipped it. Go eBay! I like your caddy idea (don't have money for a new drive) but isn't it weird that the drive will write mini dvd-r's, though it doesn't do it right?
I wonder if it could be an alignment problem or something. Unfortunately, it sounds right now like I'll have to save up for a new drive. I can't find record of anyone experiencing this problem before.
I'll update if I ever get a reply from Optorite