Welcome to CDF, Lyssy! 
Hmmm. According to www.LightScribe.com, there could be a number of reasons for this.
POSSIBLE CAUSE: Dirt, smudges, or scratches on disc; The center pinwheel feature of the disc contains timing functions as well as identification “bar code” information that the drive must be able to “readâ€.
POSSIBLE SOLUTIONS:
Wipe both the label and data sides of the LightScribe disc with a water-damped soft cloth, especially the pinwheel features at the center of the disc.
Retry using the same disc. Sometimes recognition errors are recoverable with subsequent tries.
POSSIBLE CAUSE: Non LightScribe media inserted.
POSSIBLE SOLUTION: Use only LightScribe media with LightScribe coating on label surface.
POSSIBLE CAUSE: Disc not flipped after data burning. The laser that writes and reads data is used for Lightscribe labeling. The disc must be flipped after burning data to burn a LightScribe label.
POSSIBLE SOLUTION: Make sure the LightScribe disc is data side (shiny) up and label side down before burning a LightScribe label.
POSSIBLE CAUSE: Drive not installed properly.
POSSIBLE SOLUTION: See LightScribe Drive is not detected by my computer or Labeling Application.
POSSIBLE CAUSE: The LightScribe System Software (LSS) needs to be updated.
POSSIBLE SOLUTION: Download and install the latest LSS update. This is available from your hardware and software provider. A universal version is also available through this web site.
POSSIBLE CAUSE: Your labeling software needs to be updated.
POSSIBLE SOLUTION: Check with the vendor of your labeling software for updates.
POSSIBLE CAUSE: Your drive’s firmware needs to be updated.
POSSIBLE SOLUTION: Check with your drive’s manufacturer for possible firmware updates.
POSSIBLE CAUSE: Defective Media.
POSSIBLE SOLUTION: If several pieces of media from the same package are not recognized, and none of the preceding possible solutions have corrected the problem, this may indicate a quality problem with the media. Please contact the media manufacturer for support or exchange at your local retailer.
POSSIBLE CAUSE: Defective Drive.
POSSIBLE SOLUTION: If all media from the same package are not recognized, and all hardware installation troubleshooting solutions have been checked this may indicate a defective drive. Please contact your hardware manufacture for more detailed support and a possible warranty replacement.
Quite a few things to look at there, although I see you have the latest version of the LS drivers.
I’d take a wild guess it’s the media. You might want to try some Verbatim or HP Lightscribe discs. 