Sorry for the delay in my reply.
I use the same burning program, CDBurnerXP Pro 3. Unfortunately, I'm having a little trouble with the CDRW hardware right now, so I can go and test what the setting should be. I do see that when I attempt to use it, I get the same initial choice, and I'm pretty sure you should pick the first option, which includes the burning of an iso image. If I get it working, I'll try burning a bootable CD image and get back to you with the specific settings. I don't think too many needed to be chosen. I often burn things at the slowest speed possible, as I ran into errors when burning at a high rate in the past. I'll also see if I can find anything in the documentation.