We have had several reports that the Nero software can modify Windows in a way that prevents Microstudio from working. Try uninstalling it.
Each software program has its own way of interfacing to Windows and the computer hardware, such as CDR drives. It is interesting that the other program can access the drive, but how Microstudio accesses the drive is far more demanding that other programs we have studied in the past. Most only do a duplication of the disc image, not import individual tracks, or play them from the CDG disc directly. This requirement is FAR more demanding, which is why Microstudio is more sensitive to how it communcates with the CDR drive.
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