I just started getting this error (acouple of weeks ago) and I wasn't sure what was going on. I don't have Roxio installed and have been using Nero for forever. I wasn't sure why it started messing up. I googled a bit and came to first the Microsoft site (which didn't work/wasn't applicable to me) and then this thread (which was useless and didn't apply to me). I dinked around on my comp and eventually fixed my problem. the rest of you may wanna try this out. not sure why it fixed it, or if it'll fix yours, but here goes:
Right-Click on the drive w/ the problem
Properties
Recording Tab
and then check the "Enable CD Recording On This Drive" box.
and that fixed it.
i'm running XP home w/ SP1. try it out!