I have not heard about any bugs in any recent version of InCD (after 3.37), and the latest InCD 3.52.40 has been running fine on my XP Pro SP1 box. Still, as Inertia suggested, you could try earlier versions. First, however, you should remove any remnants of Direct CD as indicated in the InCD troubleshooting guide referenced by cfitz.
I agree with cfitz that your burners are unlikely to cause problems. Yet, you could tell us whether they work correctly with Nero on the same CD-RW media that failed with InCD (after full erasures). BTW, we can't guess what "a variety of cdrws" means in your case.
Sometimes InCD doesn't install correctly due to interference from other programs. For instance, in two recent cases Norton CleanSweep and a broadband connection manager had to be deactivated. BTW, in both cases the users had sworn initially that they only had clean XP installations...
Well, although you "have been through the troubleshooting thoroughly", you might have missed something. Hence, if your patience hasn't run out, we could take a closer look at your problems. To this end, it would be easier to concentrate first on one machine and a burner; e.g., the machine with a (relatively) clean XP install and the Lite-On drive. Take another peek at the InCD guide, and come back with more information that answers querries Q1 through Q12 in S18.