While I am thinking about it, another reason for me to believe this is a software problem, is that when I initially bought this machine, even though it had the SuperDrive, the DVD-RW was not supported. The hardware was capable of it per the manufacturer but the Apple software didn't support it. Then after a while and with an update from Apple (I can't remember if it had been firmware or software) the drive was capable of handling DVD-RW with nary a hiccup until the latest update.
MATSHITA DVD-R UJ-825:
Firmware Revision: DBN7
Interconnect: ATAPI
Burn Support: Yes (Apple Shipped/Supported)
Cache: 2048 KB
Reads DVD: Yes
CD-Write: -R, -RW
DVD-Write: -R, -RW, +R, +RW
Burn Underrun Protection CD: Yes
Burn Underrun Protection DVD: Yes
Write Strategies: CD-TAO, CD-SAO, DVD-DAO
Media: No