Formatting a CD-RW with Win7/64

I thought I understood, but I guess I don't. I'm trying to format a CD-RW for packet (re-useable drag-and-drop) use. Older versions of Nero (lite) had a program called inCD that did that; Nero 8 (lite) came with this PC, but doesn't have inCD.

My understanding is that Win 7 now performs the inCD function. Apparently that's true, in the sense that after I insert the CD-RW into the burner, Win 7 asks if I want the disk for USB Flash Drive (re-useable) use or CD-R (permanent) use. If I choose USB use, a 15 minute formatting process begins, but when it ends, I get the message "Windows was unable to complete the formatting process "...and the disk is unusable. [same result on two different burners]

Googling tells me this was a common problem in Vista, which apparently was supposed to format "a la inCD" too. But the only answer is "you're supposed to use Nero (for ex) to packet format ". But Nero doesn't do that anymore (presumably because Win7 does).

So what do I do? Anyone know the real story? Thnx

 

Nero InCD 6.6.5.100 worked fine here on a new Dell Vostro 260 running Windows 7 Professional 64-bit (with all Windows updates).

 

Steve...if I try to D&D, or even just copy a file onto the CD-RW, I get a message that I need a disk in the tray (but one's already there!).