After trying for at least one month, I am about to take a decision to give my laptop for HP service to replace my burner.
But meanwhile, when I want to read an ISO file, this daemon tool problem - 'unable to set drive letter' started pestering me. So I tried all the previous solutions given above, but in vain. Finally yours did the magic not only with 'Daemon Tools', but also with my burner.
Million thanks to you!
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