I have to say after doing some research on the internet, that I see a lot of problems with that drive. By the way that is a Hitachi HL-DT-ST cdrw dvd GCC4244 and there seem to be no drivers or firmware updates. This looks like a cheap drive sold exclusively to Dell.
My guess would be you are probably correct in that it is incorrectly identified as a working karaoke drive when in fact it isn't. Best bet would be to get an external/usb drive from MTU that will read and write CDG files.
When the next upgrade of Microstudio comes out the drive may work with it, but I wouldn't bet my life on it.
