Best bet would be to get a Plextor from MTU. This way it is tested and made sure to work for CD+G.
As far as what is required for hoster:
Runs ONLY on Windows XP Pro (recommended), XP Home, and Windows 2000.
Hoster will NOT run on 98SE or ME.
CDG Certified CD-Recorder to import CDG Karaoke discs to the hard drive.
(Plextor USB2.0 if using a laptop)
Graphics video card must support Direct-X 8.1 or higher.
For dual-display use, requires an ATI or equivalent dual-display card.
Processor should be at least 800 MHz Pentium 3 (or equivalent) or faster.
The computer must have an Ethernet card or port installed.
If you do not have one you can order an inexpensive one from MTU, and our USB Ethernet module makes Hoster able to run on multiple computers, one at a time that has the USB module.
Taken directly from the mtu website at:
http://www.mtu.com/basics/karaoke-hoster.htm
(except the comment I added in red which is just my recommendation)
Good luck with everything,
Mike