I used to have the exact same burner in my system, but now my bro has it in his computer. I had never experienced a problem like the one your reporting. Off the top of my head, I would try updating the firmware to the newest revision and then try some other brands of CD-R media like Fuji, Verbatim, or etc. Hopefully one of those will get your burner to work.
Has this problem every risen up before or was this the first time it happened burning an audio cd?
TDK Firmware
http://www.tdk.com/support/cdburners/velocd12xsup.html