I'm an idiot. I was thinking it was a DVD-RW not CD-RW.
I would still recommend trying a different program to erase the CDRW before calling the drive bad.
A copy of RecodNow should have come bundled on the Sonic CD with your drive. Try erasing the CDRW with it.
If you can't find RecordNow on the CD read this.
Also, have you tried more then on CDRW and/or any other brand of CDRW?