If you do not wish to use the built-in burner or your CD or DVD device is not compatible, you can use third party packet writing software.
Packet Writing Software
Packet writing software can write only to CD-RW, DVD-RW or DVD+RW if the disks are formatted using the Universal Data Format (UDF) file system.
The advantage of packet writing is that your rewritable media can be used like a floppy or zip disk (drag and drop from Windows Explorer is also possible). The disadvantage of using packet writing is that CDs or DVDs written with this method are recognized on other computers only if the same third party packet writing software is installed there too.
Here are the most important free packet writing applications:
1) 
DELL DLA, distributed by DELL (free) (for Windows XP)
2) IBM DLA , distributed by IBM (free) (for Windows XP)
Set Up Packet Writing
There are three simple steps to set up the packet writing to work with Backup4all:
1) Open New Backup Wizard or Backup Properties and go to the Destination page.
2) Select the drive letter for the CD or DVD burner device you want to use.
3) You must select Use UDF file system. Here you can also set the Erase disk before writing option. Press the OK button.
4) If packet writing is set, you will see the following message on the Destination page: [Device name] Writing method is UDF
Use Packet Writing
Backup4all detects if the CD-RW, DVD-RW or DVD+RW is UDF formatted. If the disk is not UDF formatted it will show the following message: Disk in drive [drive letter] is not UDF formatted. Please insert a UDF formatted disk.