Can't Format Using SuperDrive

Are these rewritable CD's and DVD's that you are inserting?
Will video or audio CD's and DVD's play?

Make sure you are using rewritable media supported by Apple. See: http://support.apple.com/kb/TA25575

yes, the CD and DVD's do play.  We are using the same media we have used for a few years on this system and our other Apple.  Yes, they are rewriteable DVD's.  Don't need to format the CD's.

I haven't tried the superdrive until after I had the ML update.  Could that be affecting it?

Try resetting the PRAM by cold booting while holding down the command-option-p-r key combination until you hear the startup chime a third time.

I did the PRAM reset but there is no change.

I am about out of ideas. Maybe the write laser in the Superdrive has died.

I can burn photos to the disk thru iPhoto so don't think the write laser is broken.

I want to find out an answer since I can't get a definitive guide on the net.  When a disk is in the superdrive and disk utility is open should their be a device and volume icon on a -RW media?  My system only shows the device icon labeled superdrive.

If it should have both then my superdrive has a problem.  If only the device icon then it seems it is doing what it should do.  When I insert a thumbdrive I get both device and volume icons so that is why I thought it wasn't working correctly.