I'd say its probably a conflict between a 3rd-party burning app and WinXP's built-in burning feature. I t can be thorny to figure out and resolve. If you do have a 3rd-party burning app (Nero, Roxio, whatever) installed, and you have its installation media and product key handy, you might want to try uninstalling it just to see if the problem is there.
If you do have a decent 3rd-party burning app, I'd recommend you choose it over Windows' built-in capability for all burning functions, but that's your call.
Some other stuff to try:
Go to Start>Control Panel>Admin Tools>Services>IMAPI CD-Burning: change the setting, reboot, and see what happens - the possibilities are "Manual", "Automatic", and "Disabled"; try all 3 options, one at a time.
Another possible fix involves a registry edit - back up the registry keys before messing with them, and don't even go here if you're uncomfortable playing with the registry - delete the Upper and Lower filters from both of these registry keys:
Finally, if you have an actual WinXP install disk (a vendor's "Restore" disk won't work without a buncha fiddling around, and a "Restore Partition" on your hard drive won't work at all for this) , you could try an in-place repair
of WinXP; if you go this way, you shouldn't lose any data or applications, but you will have to update Windows and Internet Explorer, which will be a pain in the butt.