[TheMaskedm0m0]

A) If you plan to use CD-RWs to burn backups on, yes you need to modify the laser
1) Modifying the laser seriously shortens the life of the DC, since the laser has to work twice as hard now, even on store bought games. Doing some price comparing here:

$75 = New Dreamcast

$0 = Modifying the laser

$-75 = Dead Dreamcast

So your out 75 bucks because you were too cheap to buy CD-Rs.

Just buy plain old CD-Rs and use them.

A word about CD-RWs, I've used them in the past for general storage and stuff. I only got about 2 or 3 decent quality erase and re-writes before the CD-RW was completely unreadable.

~The Masked M0M0~