You can use either CDR or CDRW disks. If you are using Easy CD Creator:
Format the CDRW using Direct CD. People are having problems formatting with Direct CD. Brand and speed of disk may be factors. My new CDRW/DVD would not format 1X-4X CDRWs. I had to go to 4X-12X. You can add, delete, and edit a CDRW. Others may not be able to read your CDRW.
WIth a CDR, do not format with Direct CD. Move you photos over to the CDR. You are limited to what you can do once you have burned the CDR. Mostly compatible with other machines.
I have not sent photos directly from my scanner to a CD, but should be possible.
I agree with Jim Hardin and Haran. I distrust all packet writing software (this is not a Roxio thing; I don't like Direct CD, File CD, etc.). CDR blanks are inexpensive enough and mastering is far more reliable.
There are also a number of products out there that make digital albums. Once you get into it, you might want to try them (e.g., Flip Album, Flip Album Pro, CompuPic Pro, etc.).