Then my comment was correct, it's not XP's built in burner that burned the disk but Nero; a separate software altogether. Anyway, I'm not sure what you mean about saving the folder. Is this after you've burned or before burning. When you add files to Nero it places them in a temporary place on your harddrive before burning to disk. Then after it burns the files, it asks if you want to keep those files placed in the temporary part of your drive, if you say yes, then they are still there. I usually say no to this question and Nero deletes the temporary files.

What version of Nero are you using? Might try an update to the version you have, as the version you have might not support your dvd drive. Don't get me wrong here, I too just recently bought a new DVDRW LiteOn and still had to update Nero to make it work with DVD's.