Thanks for your replies.
I did try with different medias (CD-Rs), and slower speeds, but to no avail.
However, the problem does not seem to occur with CD-RW media.
Could it be some head mis-alignment issue, because I once tried to use a 90min (800MB), CD-R, which the software gave warning, and did not write.
The problem occurs, just when it begins to write the 'lead-in' or track (for TAO), and then does not progress. The status bar shows as 4%, and the writer LED keeps on blinking RED as if it were writing, and then turns GREEN.
However, after this, I am not able to eject the CD from the writer or close the Nero software unless I reboot. Nero may be closed forcefully, by issuing an 'End-Task', several times, but if you want the CD out, then you have to reboot the machine.
I have noticed a similar issue using another external cd writer, using nero 6.3.1.20 and win-xp, but here it gives me a failed data verification.
However, both the above devices work well with windows XP cd-writing software.