Error: START DAO RECORDING Unable to set disc parameters

Yeah - the example in psxcopyworld is made with a specific version of CDRWin and with a specific burner. CdrWin is sort of "smart" and sets paramaters according to the burner it finds (if it is able to read internal parameters). Some burners need to be "told" to burn RAW. For Mode2, it's not something YOU would set. But there's no documentation to say otherwise.