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The short answer is no you don't have to have packet writting software.
I am not still totally clear on packet writting software but as I understand it allows you to write to CD much like you write to a Hard Drive. I have the software and installed it but have yet to figure it out. I formatted a CD but never did understand how to write to it. I have not taken the time to read the help files yet.
In order to "drag and drop" with explorer to a CDR, you need to format the disk. This takes quite a while (depending on the speed of your drive) but only has to be done once.
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