I just got an LG-4163 over the weekend (on my fairly ancient P3/1ghz, Windows 2000 SP4 machine), and saw this error once when I first installed it in my computer and restarted for the first time (The system hung for a very long time on restart and threw this). Now I am starting to see it a bit more. I've had a long day and am not really up for a night of testing, but the drive has been working fine (good burns, good scans from it, etc).
I've done some checking and I have a few similar errors (maybe 1 every 6 months) in the event log, but MANY since putting the LG in. A quick Google didn't reveal too much, except people pointing out chkdsk/memtest but I do chkdsks a lot and nothing is wrong; and like I said the majority of the errors started after putting the LG in.
Event Type: Error
Event Source: Removable Storage Service
Event Category: None
Event ID: 17
Time: 9:32:35 PM
RSM cannot manage library PhysicalDrive4. It encountered an unspecified error. This can be caused by a number of problems including, but not limited to, database corruption, failure communicating with the library, or insufficient system resources.