I have recently fixed this issue. It was a combination of a couple of things.
The main reason (If you have done all the things recomended by Microsoft, e.g. make sure the drive properties => recording is selected as "Enable rcording on this drive") is profile related.
Goto Control Panel (Logged in as an administrator) and create a new Windows User account.
Log out from the current user profile and login as the newly created user.
You should now be able to use the CD Writing Wizard in Windows. If now, then you will probably need to change your CD/DVD burner and try again.
Check also in "Control Panel" => "Services" and check the IMAPI service is running. If not, you have problems with the drive and or windows user profile.