You don't mention what operating system you're using, nor any description of your computer's components (like Ram etc) which would be very helpful to know for people trying to help you....
When you say 'saving to my E drive', I am confused. Are you running software to BURN those files to CD, like Nero or Roxio? They need to be etched into the material the CD is made of.
Sounds like the disk you 'made' is trash, since it locks up your computer. Why not start again...
Create two new folders on your harddrive (C). Name them something like Scans and Edits
* open PSE
* scan an image
* close scanner driver
* save this file, as is, right out of your scanner in new folder 'Scans' (that is, if it is a good scan, otherwise rescan with different settings in scanner)
* make a copy of this file
* on the copy, do all your editing, resizing whatever in PSE. ------note: presumably during your editing you have created new layers in your image file
* save this edited version in your new folder 'Edits'. -----note: to preserve the layers for future editing, save in .psd format. Image>Save As, choose .psd from scroll bar. If you save in jpg any layers you have created will be merged into one layer.
* continue on like this, adding photos to Folder Edits.
* launch your CD burning software
* point the program to your folder 'Edits' and have it burn all the contents in that folder
Come back if you have more info or questions