Sorry to say but there is definately something not right here. Let me explain. I re-formatted this whole CD-RW and erased all the data using the full format function. After that I did a InCD format as I want to use this CD-RW as InCD format. All this went well and the CD-RW's format was now formatted to InCD meaning that I was able to drop files into it and also could erase files by deleting them, similar to that of a floppy disk.
Anyhow what I was doing was making a CD-RW and calling it PC Security. Basically what I do is put PC Security software such as firewalls, antivirus, antispam etc etc software on it (mostly free stuff).
Now here's the weid part. I had a look at how much space/capacity I had left which was 450MB's, so I decided to transfer AVG Free edition. During the transfer I of AVG Free edition I got an error which told me that the disc was full, surely AVG doesn't take up more than 450MB's. Now I'm told I've used up 540MB on my CD-RW and also I cannot delete files. What ????? If I'm using this CD-RW as InCD format I should be able to delete, rename files like what you do uing a 3.5" floppy disk.