Nero 7 works pretty much the same as Nero 6. Strange error you are getting about the image maybe being damaged because there should be no image at the stage of burnging just a bunch of files in the various folders.
One must use the application called Nero Burning Rom if one is using Nero, and not any of the other applications that come with the Nero suite. Its nero.exe if I'm not mistaken.
Go here to Point 6 and check screenies for the exact settings http://www.pro-networks.org/forum/viewtopic.php?t=36461
Perhaps you need to download Nero-188.8.131.52_no_yt.exe from nero.com and use the trail version. It's good for 30 days I think.
"The great majority of mankind are satisfied with appearances, as though they were realities, and are often more influenced by the things that seem than by those that are." - Niccolo Machiavelli