Well it sounds like something else in there is conflicting with Nero, trying to run at the same time or like that.
Start thinking about what else you might have installed that can use the CDRW and go from there.
You can control alt del and see what's running to check quickly if you have some other apps that might not play well with Nero.
I am runnig XP Pro here and it's been the most stable version I have run, 98 was good, but PRO is better.
Do you have all the latest patches and the firmware on the drive as up to date as you can?
It can be a tuffy, you might even want to try a selective startup so you can load things one at a time and you might find a DLL or driver that's left over causing your problem too.
You got me curious now, hopefully somebody else with your combo might have a clue.
You can also try the newsgroups and their support to see if this is a known issue that has all ready been solved by someone.