|Your optical drive model is a CD/RW / DVD-ROM drive.|
It cannot burn DVDs, or recognize blank DVDs.
The burning program, if it's one that can burn both CDs and DVDs, cannot find a burnable DVD disk because the drive can't recognize a blank burnable DVD (the simple burning program that's built into XP cannot burn DVDs).
"Can I record a 980 MB DVD video to two 700 MB blank cd instead."
You may be able to if you use software that can create multiple disk set archives, but otherwise, no.
"Combo" DVD burner drives - ones that can burn and read both CDs and DVDs - are cheaper now than they've even been. Get yourself a new drive.