Scott
I'm sure if you google how to burn CDs as non-admin, you'll find the correct registry hack for it. I'm actually used to Nero which includes an application (BurnRights or NeroRights I believe or something along those lines) to give a specific group the ability to burn a CD or make it so that anyone logged onto the machine can burn CDs. I'm sure most other applications will have that same ability. I think Roxio's has a similar application. Either way, they just modify the registry or perhaps a Local Security Policy in your Admin Tools section to give non-admins rights to burn CDs
As for Windows Update notifications, the "Automatic Updates" feature on 2k and XP will pop up regardless of who's logged on (not sure about Guests) and let you know if patches are waiting. In 2k, it's in the Control Panel and in XP right click on My Computer, goto Properties and it's one of the tabs. Just set it up to notify the users
Letting non-admins download and install Windows Update patches is a very risky business as most users will download everything they see in that listing even if there is no need for the patch. Plus, without testing the patches on a test network or machine before applying it may cause you more harm than good. If I had a dollar (hmmm, maybe even a dime) for everytime M$ rolled back or had to modify an update patch to close a hole or fix a problem it caused, I may just be richer than Bill. :
Either way, it may be as simple as setting a Local Security Policy. Or you may as well just make the user(s) a Local Admin on their desktop machine if you are being this relaxed with the user(s) in question.