Creating Bootable Media

In the directions for this it says "For this, you will need a CD-R/RW blank, several formatted diskettes (the wizard will tell you the exact number).

I am using a CD-RW. Is that correct? This is a brand new disk. Does it have to be formatted or anything before I can use it?

I created one of these quite some time ago, but it never asked me for "several formatted diskettes" which is why I want to create another one -- thinking I did something wrong. The process seemed to go smoothly the first time but I just fear I'm going to find out I did something wrong if I ever need to use this disk.