Roxio not burn - says drive is in use by another application:'Roxio DirectCD Kernal'

Have a look in systray which is next to the clock, is there a Direct CD icon sitting there? If there is, then right click it> close. Now retry burning your CD.

When I right-click on Roxio icon it gives me an option to make CD writable - Then I get an error message "Not enough disc spce. Drive reprted an unknown error(0x0) You will not be able to read and write to the CD through drive letter access." But there doesn't seem to be any option to close.
Thank you

After disableing Roxio at startup, now roxio stops responding when I try to add a document to record.

If you have the Roxio installation disc with drivers I would suggest that you remove the program via the control panel -> Add/remove programs and then reinstall.

I have found that this typically will resolve an issue of the nature you describe for many programs.

Should you chose to remove and reinstall, be cautious about deleting any shared files unless you are absolutely sure that Roxio is the only program that uses them.  When in doubt, leave them, since that won't hurt anything.

Good luck.