These are the supported write speeds by your burner with those blanks. This information is also shown in ImgBurn's window. Notice that by using MAX write speed your burning is using 10x on those 8x rated blanks, which is overspeeding and could be the cause of the failure. Set the write speed to 8x or 6x and it should work better.
Looks like your system's I/O is locking up, and the only thing that could solve this is newer drivers. You'll have to get a new burner (SATA preferably) or an IDE PCI card.
Have you tried burning at all those speeds? If you did and the disc was bad then try with Taiyo Yuden 8x DVD-R (TYG02 Media ID) blanks. It could also work with Verbatim 16x DVD-R (MCC 03RG20 Media ID) blanks.
That log doesn't show any burn operation. If you're using ImgBurn from DVD Flick then the correct log should be in the same folder where you saved the VIDEO_TS folder/ISO image.
It seems you didn't have an I386 folder at the root of the disc, or else ImgBurn would've suggested the OS installation disc settings. Is that a Windows installation disc or a Windows PE ("LiveCD")?
On another note...
http://www.firmwarehq.com/Lite-On/iHAS324/files.html
Stop waiting for someone to hold you by the hand and read what was posted. Your problem isn't any different than the million and one others we answered before, hence why we created that topic about dual-layer burning.
Your drive isn't recognising the new dual-layer media, maybe because it's too old and doesn't have support for it. You could try with the Verbatim 2.4x blanks which have been around since forever or you'll need to buy a new burner.
Can your laptop drive read burned discs? If it can try using it to verify that disc against the image file. Also please post the log from you've burned with Verbatim media.
You can find the latest firmware for your burner here. After updating the firmware, try again with Verbatim DVD+R DL blanks, and if it doesn't work, then invest in a new burner.