Symptom
You are unable to burn an audio CD even though the drive mechanism is compatible with iTunes.
Solution
Remove the CD Master plugins from the Authoring Support Files folder in the Extensions folder.
Note: CD Master authoring files were not part of iTunes 1.0.x and are not compatible with iTunes 1.1.
For a list of compatible CD-RW drive mechanisms, see article 60806: "
iTunes 1.1: Compatible Third-Party CD-RW Drive Mechanisms."