There are so many CDR drives available today that we have no way of testing every one.
If your CDR drive appears in the Reading Drive and Writing Drive fields when you have the Karaoke or CDG button selected (versus Audio or WAV), it is CDG capable and Microstudio can use it.
Microstudio automatically detects the drive, and queries whether the drive can read and write the required CDG format. If the drive answers back that it can do CDG, then Microstudio allows you to select it in the Drives list boxes for Karaoke.
The demo you are running is Microstudio 2.312. We are currently shipping version 2.314 that has a
Detect Drives button that shows you all CDROM/CDR drives on your computer and if they are Karaoke and Audio capble. This allows you to see that Microstudio is really detecting your drive, even if it does not show it to you.
Now, to your problem.
Read this link for suggestions to solve the problem. Also, make sure you have downloaded the ASPI driver that is required.
Click here for ASPI instructions.