keithm,
You could try using different media. Not all media is compatible with all drives, consult the HP website for a list of compatible RW media for your system.
If the media you are using is on the approved list and you want to use it as a burner then yes, you need to replace the drive.
The error codes are meaningful to the HP technical support personnel. Since different lasers are used for reading and writing this test is telling you that it can’t read what it writes (kind of like me).
-Fred