Thanks.
Here how I solved the problem. Ensure all NERO software has been removed.
1. Insert Nero CD and start installation. This will open up a window asking for an email address. Put it in. Then this will open up the NERO web site. Try to close it - I had to reboot my netbook to get out of it.
2. Once rebooted, go back to the NERO web site and download the latest Nero 7 version:
http://www.nero.com/eng/downloads-nero7-update.php.
3. Install new software. When asked about the serial no., insert your CD - it should automatically pick it up.
Now, I have Nero 7 Essentials working nicely.