The IO magic unit is a generic. You can usually find them under "other".
CDRW4048E IDE/ATAPI 40x12x48x x x x 5.5.8.0
Which shows that support was added under version 5.5.8.0
This REALLY sounds like you have an XP incompatible driver stuck in place. I'll keep looking, but you might want to completly uninstall Nero, including any "shared" or "common" files, then remove the Nero folder from the "Program Files" folder.
Reboot, and see if the functionality returns.
Jon
"Do or do not. There is no try!" - Yoda