I spent a few "idle" hours this afternoon trying to work out how to burn a DVD using Windows Server 2008. Server 2008 doesn’t appear to come with any inbuilt DVD burning capability (like Vista does) so you need to use a CD/DVD burning program .. in my case I was trying to use MagicISO but it didn’t seem to recognise my DVD writer. Searching the Internet I found a lot of other people suffering similar problems but I found my answer on Jim Mischel’s blog http://blog.mischel.com/2008/12/10/burning-cds-on-windows-server-2008/
The solution is to start MagicISO (or your DVD burning program of choice) with administrator priviledges (e.g. Run as Administrator) and then it will recognise the DVD burner as a valid recording device.