It sounds like you're on the right track with the buffer set to 16mb and all. But the basic idea is that if it worked before, it should work now. Try dumping the Iomega software suite and reinstall clean (as clean as you can, at least). I've got a Pismo Powerbook and a iomega Predator CD-RW and have been very happy with the setup. Give it a shot and let us know.
BTW, is everything else OK with your system?
PeteWK