Error from iTunes Setup Asst -- iTunes cannot locate the CD Config folder

Question

It says: iTunes cannot locate the CD Configuration folder, so you cannot import or burn CDs and DVD's. This folder must be in the same directory as iTunes.
Because of space issues, I moved iTunes to run off of a portable hard drive (it's a silver iomega 100 GB drive, if it matters). I had to uninstall and reinstall iTunes and import the old library into iTunes to get it to work, but now it's giving me the error.
I just imported music from a disc, so that works actually, but when I try to burn a disc, it says "disc burner or software not found." I'm flummoxed.
Diagnostics are below:
Microsoft Windows XP Professional Service Pack 2 (Build 2600)
Dell Inc. Latitude D820
iTunes 7.0.2.16
CD Driver 2.0.6.1
CD Driver DLL 2.0.6.1
LowerFilters: PxHelp20 (2.0.0.0), DRVMCDB (1.0.0.1), DLACDBHM (1.0.0.1),
UpperFilters: GEARAspiWDM (2.0.6.1),
Video Driver: NVIDIA Quadro NVS 110M \GeForce Go 7300
IDE\DiskST980825AS_____________________________8.02___, Bus Type ATA, Bus Address [0,0]
USBSTOR\DiskHTS421210H9AT00_______0000, Bus Type USB
IDE\CdRomSONYDVD+-RW_DW-Q58A____________________UDS2___, Bus Type ATA, Bus Address [0,0]
If you have multiple drives on the same IDE or SCSI bus, these drives may interfere with each other.
Some computers need an update to the ATA or IDE bus driver, or Intel chipset. If iTunes has problems recognizing CDs or hanging or crashing while importing or burning CDs, check the support site for the manufacturer of your computer or motherboard.
Current user is an administrator.
Failed while scanning for CD / DVD drives, error 2500.
Virtual drives can sometimes interfere with reading and writing CDs in iTunes. If this is a virtual drive and you are having problems with other drives, try uninstalling the virtual CD application.
D: Unsupported CD or DVD drive.
Virtual drives can sometimes interfere with reading and writing CDs in iTunes. If this is a virtual drive and you are having problems with other drives, try uninstalling the virtual CD application.
Any help anyone could provide would be much appreciated.
Dell Latitude D820   Windows XP  

Answer 1

Howdy beanettejurke,
The article linked below provides troubleshooting tips that’ll resolve optical drive issues, like the CD alert you’re seeing when launching iTunes on your PC. 
iTunes for Windows: Troubleshooting CD issues caused by device filters - Apple Support
Cheers,
-Jason