Sorry, I don't know how that system works. I also never use Windows Movie Maker due to issues that I can't use it's files with Virtual Dub.
My DVD Writer comes with Ulead MovieFactory which can make VCD as well as other videos.
If you just need better CD recording software try http://www.cdburnerxp.se/
Windows XP Home, Movie Maker V5.1,
1) Copy to CD
2) You have files waiting to be written to CD
3) Welcome to the CD writing Wizard
4) There is no CD in drive, with a longer explanation.........
After i reboot the computer it will "Sometimes" work.