That's the way XP (not just SP2) identifies any burner that supports DVD-RAM, but at the end it will make no difference to you.
Just use the software that came with your drive (sorry just now I did realize it came with nothing...), and for the CDs don't forget to "tell" XP that you don't need its native support to CD recording, as sometimes it can cause you some trouble.
For drag and drop (using RW media) you need to get/buy packet writing software, like Nero's InCD, Pinnacle Instant CD+DVD or Roxio Drag to Disk.
But as debro says, packet writing software have a lot of problems - conflicting with other software and failing quite a lot.
Windows XP offers you natice support to DVD-RAM, providing you can live with discs formatted using FAT32 file system. It is a much more reliable way to use DVDs to drag and drop.
If you require UDF file sys, it continues to offer advantages, specially if you can use the Panasonic DVD-RAM driver that used to come with LG drives some time ago...don't know if still come.
For CDs, the way XP works offers something like a virtual drag and drop and only records to disc at the end, and needs no specific software.
You have to search on it.