1) It may not be kazaalite, but if it is, try the K++ version. It is a completely yuck free version of kazaalite. -
http://doa2.host.sk/
It also has the ability to do continuous searches, which gets around the 2 search limit.
2) Its probably a combination. Cheap media is more likely to have problems. Add to that the fact that your burner isn't the same quality as the professional ones, and you are just adding up problems. Don't forget to add in the fact that your car cd player isn't exactly a home stereo system.
Fixes: See if someone you know will let you burn something on their burner. One with your regular media, and one with a higher quality (although that means high price, whether its better quality or not is anyone's guess). This will help you isolate whether it is media, recorder, or car player.