If you want to use your CD-RW like a big floppy disk, then you must format it with InCD before using it. If InCD doesn't open automatically when you put in a blank CD-RW, do this:
Go to your desktop.
Right click on "My Computer" and select "Explore".
Find the Icon for your burner and right click on it.
From the menu that pops up, select "InCD format".
After the format has finished, you can copy files to the disc, delete files from it, etc.