When you insert a new blank CD or DVD in Windows 7 and attempt to write files to it for the first time, you see this:

The two options are "Live File System" and "Mastered".
But which to pick?
Live File System
This is a UDF (Universal Disk Format) file system and is optical media specific.
The single largest issue with Live File System is that in order for a PC to read it, the OS must support it. Where it says "running Windows XP or later", that’s something you do have to pay attention to because older Windows OSes will not recognize the disc with that format.
If however you intend to use a CD/DVD "like a USB flash drive" as stated above, then Live File System will serve you well. However if what you write to disc is intended to be used in different PCs – especially if you’re burning a disc for somebody else – don’t use it.
Mastered
Using Mastered instead of Live File System is the most likely the way you’ve always burned CD/DVDs. Once data is written to the disc, it cannot be edited or removed.
The Mastered format ensures maximum compatibility and will work in nearly any computer.
When in doubt, always use Mastered. It eliminates any confusion as to whether what you write to disc will work in other PCs besides yours.

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