In order to be able to backup your data to CD-R/CD-RW, you should do the following:

1) In the "Backup Media Type" dialog, choose the option: "Backup to a CD-RW or CD-R"

2) Make sure that your able to copy/paste or drag/drop files or folders onto the CD-RW/CD-R through Windows Explorer, using special software that directly writes data to your CD (e.g. "DirectCD" software from Adaptec/Roxio(r)).

So you have to make sure that such program is running before you attempt to backup your data to CD-RW/CD-R using Outlook 2000/XP Backup.

3) Also, in the same dialog, make sure you have selected the right drive letter of your CD drive.