Please see the URL for a details. The problem seems to persist with version 1.11, 2.0, 2.0.xx-alpha of cdrtools. The only way I got it to work was by pointing the /usr/src/linux symlink to /usr/src/linux-2.4.20-r2. This also seemed to work for others. I am not quite sure why this is the case.
/usr/src/linux has to point to you current running kernel
wrangler
*** This bug has been marked as a duplicate of 6425 ***