I would recommend leaving the cable select alone for now until you have done some basic troubleshooting. If your computer was designed with cable select as the default connection mode, it should work. The fact that you were able to successfully format and use a CD-RW disc is proof that the drive is being recognized properly.
What operating system and Nero/InCD versions are you using? You could have the problem that rdgrimes mentioned, that of InCD causing a blue screen when a CD-R was inserted. Before I blamed everything on cable select, I would try uninstalling InCD to see if a CD-R can then be successfully recognized and burned in Nero.
Just in case you don't already know and tried to use a CD-R disc with InCD, it can't use CD-R discs, only CD-RW discs.