The first thing I would suggest is using a CDR and not a CDRW, especially if that CDRW has been used and erased.
However, your problem is happening during the scan of the local disk, so it isn't the destination disk that is the problem, in my opinion. I recommend that you contact support for help on the issue:
How to reach support (FAQ) - http://forums.microsoft.com/WindowsOneCare/ShowPost.aspx?PostID=2421771&SiteID=2
-steve