I'm afraid that "Enable CD Recording" only turns on Windows XP built-in cd burning and won't help nero.
Have you tried uninstalling the cd-burner driver in device manager and rebooting??? that would be my first step.
But yes also OEM versions of nero will not work with any drive other than the one it was bundled with... but if you're sure its not that then don't worry. if you aren't sure, uninstall nero and download the trial version from nero's website, it will work for a couple of weeks and might help you pinpoint the problem.
Also, have a look in Nero InfoTool that comes with Nero. It shows info about drives and what supported burning modes they have, might give you an idea.
Lastly, disable or uninstall any cd emulation software, like DaemonTools, ImageDrive, AnyDVD, etc. They can stuff things up.