When iTunes is not able to recognize disc burner software, it is generally a sign that there is something wrong with the driver that iTunes is on. The driver will need to be repaired or completely reinstalled. This is an easy fix as long as proper instructions are followed.
The first thing that should be done when iTunes is not able to recognize software is to check with the computer manufacturer to be sure that all firmware updates are downloaded onto the computer. The firmware of the CD or DVD drive should be up-to-date.
If the firmware is up-to-date on the computer, the problem is most likely within the driver. This can be fixed by launching the Windows browser and navigating to the drivers that are contained within system 32 in the "My Computer" tab. If the files labeled "afs.sys" and "afs2k.sys" are present, they are generally what cause a problem with driver and optical software. These files should not be deleted because they may be needed for other parts of the computer, but they can be moved out of the system 32 file and into a different file that is present in the "Windows Explorer" tab.