Update: Using this method causes problems in that the drive is not automatically polled regularly. So if you insert a disc, you will have to open the CD drive in my computer to see the files in it. Use BurnRights bundled with Nero to give burn rights to users. Thanks to Jomon in Kerala for the reminder to update.
I was having a bit of a trouble allowing users logged in to the domain to burn cds from their systems. Seems the admins at HO had changed some security setting and domainwide people were facing this problem. Luckily for the Delhi users Jeba Singh Emmanuel was there. Of course, I got the solution from Ashampoo Burning Studio 2007′s help file.
I needed to change allocatecdroms from 0 to 1 in HKLM/Software/Microsoft/WindowsNT/CurrentVersion/Winlogon in the registry
Voila, CD Burning works. If only the admins had told me this. It would have saved me some 30 minutes.