I won't be able to help unless you follow my suggestions and provide detailed answers.
Apparently your CR-480ATE (not 480-ate) rewrites at 12x. Hence it can't use UHS media (24x). So what are your Memorex discs rated for?
I told you to try other media. Apparently you didn't, and I don't even know whether you used just a single Memorex disc; if you did, that disc might have been bad, and we won't get anywhere without further tests.
You should also try formatting with the option "Format disc to CD-MRW" unchecked (and, of course, better media). If this worked, your problem would be isolated to CD-MRW, in which case you should check if you have the latest firmware (apparently 1.0G).
Since the InCD help doesn't work, you should download the InCD manual from Ahead; it's slightly outdated, but better than nothing.
Note that InCD discs should be ejected via the InCD icon (since ejection via the burner's button may destroy a disc).
When you format a disc by InCD, you should get the InCD mounted message, after which the InCD icon has a green N-E arrow. It should stay green while the disc is used (for copying, etc). When the disc is ejected, the InCD icon has a red S-E arrow (indicating there is no medium or InCD-formatted medium in the drive). When a formatted disc is reinserted, you should see the InCD mounted message, and the arrow should flip and turn green again.
The third possibility is that the icon is a yellow circle with an exclamation mark and a red S-E arrow, which means that no InCD-supported CD-RW drive could be found.
Hence I am stymied by your description. Do you mean that the InCD icon changes before or after you see the Explorer message? Does it take any of the three forms described above? Could you describe the "crossed out circle" more precisely? Does Explorer's message really refer to "cd-rom"? What do you do afterwards to eject the disc? Note that when the InCD icon has a red S-E arrow, the only option after right-clicking on it is Version Information, i.e., there is no Eject.
So please run several tests with better media, and describe in detail the InCD behavior, noting how it differs from the above description.
You should take a look at the InCD troubleshooting guide for XP
http://www.cdrlabs.com/phpBB/viewtopic. ... 3689#43689
and the related (a bit fuller) version for W2K
http://club.cdfreaks.com/showthread.php ... adid=60163