I've had trouble with this same problem on this drive. I've successfully burned images with my laptop using DVD-RW. I'm trying to figure out what's going on. Here is a log file to help debug.
Thanks for the help!
I also get this error in Event Viewer.
Log Name: System
Source: cdrom
Date: 10/29/2012 10:58:33 PM
Event ID: 7
Task Category: None
Level: Error
Keywords: Classic
User: N/A
Computer: Ryan-PC
Description: The device, \Device\CdRom0, has a bad block.
However, I could use this CD on my laptop and it will work just fine.
ImgBurn.log