Hi grmzubair,
Welcome to Microsoft Answers!
a. Do you use any third party CD/DVD burning software?
If yes, uninstall it for the time being and check if the issue persists.
Assume that an application uses Image Mastering API version 2.0 (IMAPI v2) to burn some data onto a recordable DVD or CD on a compouter. However, a 0xC0AA0007 error is returned.
This problem typically occurs with backup applications that use IMAPI v2. For example, this problem occurs when you try to create a system repair disc by using the Backup and Restore tool in the operating system. The job fails and you receive the following
error message:
Fail to create system repair disc. (0xC0AA0007)
So, I would suggest you to put the computer in a Clean Boot state and then burn the DVD.
Follow these steps to perform a Clean Boot.
Method 1: Perform a Clean boot
Note: If the computer is connected to a network, network policy settings may prevent you from following these steps. We strongly recommend that you do not use the System Configuration utility to modify the advanced boot options on the computer unless a Microsoft
support engineer directs you to do this. Doing this may make the computer unusable.
a) Log on to the computer by using an account that has administrator rights.
b) Click Start, type msconfig.exe in the Start Search box, and then press
ENTER to start the System Configuration Utility . If you are prompted for an administrator password or for confirmation, type your password, or click Continue.
c) On the General tab, click Selective Startup , and then click to clear the Load startup items check box. (The Use Original Boot.ini check box is unavailable.)
d) On the Services tab, click to select the Hide all Microsoft services check box, and then click
Disable all.
Note Following this step lets Microsoft services continue to run. These services include Networking, Plug and Play, Event Logging, Error Reporting, and other services. If you disable these services, you may permanently delete all restore
points. Do not do this if you want to use the System Restore utility together with existing restore points.
e) Click OK , and then click Restart.Note: Reset the computer to start as usual
After you have finished troubleshooting, follow these steps to reset the computer to start as usual:
a) Click Start , type msconfig.exe in the Start Search box, and then press
ENTER. If you are prompted for an administrator password or for confirmation, type your password, or click Continue.
b) On the General tab, click the Normal Startup option , and then click OK.
c) When you are prompted to restart the computer, click Restart.
Fro more information check out this link which talks about "How to troubleshoot a problem by performing a clean boot in Windows Vista or in Windows 7"
http://support.microsoft.com/default.aspx/kb/929135
Regards,
Divya R – Microsoft Support.
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