Read this thread for some already posted answers.
http://www.mtu.com/vbulletin/showthr...=reading+drive
Another relevant thread is:
http://www.mtu.com/vbulletin/showthr...hlight=reading
Your CDR drive is not capable of CDG. If you click the Audio or WAV buttons (versus Karaoke or CDG), your drive will appear for audio work. This will prove that Microstudio is detecting and asking your drive, and the drive is answering that it cannot do the CDG format.