Try installing a trial version of Nero, but only install the BurningROM portion, not all the other bloated junk. BurningROM is still one of the best out there.
Or try DeepBurner Free and see if this helps.
DeepBurner won't let you format and use the disk as drive (that I know of) but it may allow you to burn a folder and files etc. to it. Same with BurningROM.
I personally have never liked Windows Builtin Burning Feature, never had that much success with it.
Other than that,,,,,,, may be a problem with the drive itself. Or check the properties of the drive and make sure it is set to allow burning.
There is also a Group Policy that will disable burning functions.