Hello anyone having this problem. I did some more searching on here and got everything to work. Here are some notes from other people and from me combined that will hopefully help...
If your recordings start to fail...
How to properly reinstall NetMD:
1. Uninstall all OpenMG related software via the Add/Remove Programs control panel and reboot as necessary. This means, OpenMG 2.2, related 'Limited Patches' and the 'Secure Module', SonicStage, Simple Burner, and RealOne. Make sure that you unplug your unit.
2. If you run Windows XP, proceed to delete directories within "Program Files" and 'Documents and SettingsAll UsersApplication DataSony Corporation' 'Program FilesCommon FilesSony Shared' 'Program FilesSony' relating to OpenMG.
3. Start -> Run -> regedit. The 'Registry Editor' utility should appear on your screen. Delete the references to OpenMG located under 'HKEY_CURRENT_USERSoftwareSony Corporation' and 'HKEY_LOCAL_MACHINESoftwareSony Corporation' by right-clicking on the entries.
*NOTE: I do not run any other sony products on my computer, so I deleted EVERYTHING that came up with the registry search for "sony" "simple burn" and "openmg".
You have to uninstall and delete (in the registry, etc) everything related to Sony and OpenMG. Once everything is "fresh", then reinstall the drivers, then Simple Burner, and OpenMg - and then reboot after the installation.
*NOTE: After I did this (uninstalled the programs, deleted all the registry entries, reinstalled everything and rebooted) my recordings worked fine again.