I agree with TripleTwo's advice but...

I just tried to connect to macdrivermuseum.com and it was an advertising site. Thus I don't know what the OP has installed.

I'd go straight to the Apple legacy download pages (wading through drivel) and download the last version of Apple CD-Setup that supports System 7.0. The CD extension only provides access to HFS disks; you need the additions to read 9660, audio etc. Make sure that you have the extensions.

CD-RW media is unlikely to work with any Mac with a SCSI optical drive. Research OSTAR and UDF for background.