Because a third party program (Roxio) does not recognize the drive as having burning capabilities the "Backup and Restore (Windows 7)" does not appear to be part of the problem.
Can you go to the following registry key:
HKEY_CURRENT_USER\SOFTWARE\Microsoft\Windows\CurrentVersion\Explorer\CD Burning\Drives
If you expand "Drives" click on any "Volume" sub-key that exists.
For each "Drive" in the adjacent right window is a value "IsImapiDataBurnSupported"
For each "IsImapiDataBurnSupported' value what is the "Data" ?