Bluray plays CD, CD-R, CD-RW, DVD, DVD-RW, DVD+RW just like HD-DVD does. Neither format has an advantage over another in this area.

Kex, I wouldn't worry about 1080P. Unless you have a very large RPTV or front projection system, you will be hard pressed to see any difference between 1080I and 1080P Especially if you sit more than 10ft from your display.