2. Q. Does the type of media I use matter?
A. YES: http://forums.afterdawn.com/thread_view.cfm/1/240341 If you're too lazy to read, use Taiyo Yuden, Verbatim, or Maxell High Grade (DVD+R's). The PS2 laser is picky, these are the only three types of media you should trust for maximum reliability and compatiblity with your PS2. Avoid Memorex, Staples, Imation, Dynex, Princo, Bulqpaq, etc.
CMC Magnetics is garbage. Need proof (Thanks to Alkohol):
http://forums.afterdawn.com/thread_view.cfm/1/262544 If you really want to do the PS2 backup thing right, pick up some Taiyo Yuden or Verbatim's. I only burn to TYG02, the 8x Taiyo Yuden DVD-R's. So far I've never had a lag, skip, freeze, or boot failure since I switched to Taiyo Yuden's. With results like that, why would I use anything else? The brand of media you use means very little.
The key determinant of media quality is the Media ID. For info on the Media ID, check the bottom of this thread.
Try this link for all types of different info on media quality, compatibility, and console reliability: http://www.videohelp.com/dvdmedia DVD Media Quality Review: http://www.cdr-zone.com/articles/recordable_dvd_quality_page_1.html
And yes to answer your original question correctly.. it is an image file .iso that you are going to be burning once you have the .iso on the hard drive.
