Q: iTunes did not install correctly on Win7 - 'You won't be able to burn or import CDs'

Refer to this article:

iTunes for Windows: Troubleshooting CD issues caused by device filters

http://support.apple.com/kb/TS2372?viewlocale=en_US

Try this one:

iTunes for Windows: "Registry settings" warning when opening iTunes

http://support.apple.com/kb/TS3299

See if this article will help:

iTunes for Windows: Optical drive is no longer recognized, or "Disc burner or software not found" alert after install

http://support.apple.com/kb/TS2308?viewlocale=en_US

Hi there, I'm running XP 32-bit and it took me the best part of 24 hours to solve, little thanks to Apple Support, and want to share it with you, big thanks to B Noir (Tony) in New Zealand.

Basically, do what Apple Support says but for goodness' sake make sure you write UpperFilters (all one word) in the registry modification and not Upper Filters as I did. Believe me, I was on the point of closing my account if it weren't for that Man down in New Zealand! Yo!!!