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It's not a rumor, but it's a little bit misguided. Dreamcast machines that were manufactured after approximately October 2000 will not play the previous format of self-boot copies that consist of a tiny audio track followed by data. They require data in the first track as well. A new format was developed by the groups that accommodates the new machines. This format appears (from my limited knowledge) to be a duplicate directory at the beginning, that points to the files in the actual directory that follows it. It almost looks like if you burned all the files to the disc, then you burned a second session while only importing the previous session with no additional files. I don't think this is how they did it, because the actual files are in the second session, not the first. Therefore, the first session's "DATA" directory is merely a copy of the directory in the second session (rather than the other way around).
Anyway, some of the newer games have already been released using this newer format and the "BIN2BOOT" program was updated in January 2001 to write this format as well.
Sooooo.... There was about a 2-3 month period there where not all CDR discs would play on SOME Dreamcast machines (newer ones), but now if you find a game that doesn't play on a new machine, you can extract all the files and build a new ISO, then run BIN2BOOT on it, burn the .CDI using Disc Juggler and voila! It now works on the newer DC.
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