I don't think I've ever seen or used "packet-writing" mode. Does Windows support this out of the box or do you need a third party application?
To erase a CD-RW, open Disk Utility and erase it. Then you can burn it again from the Finder or wherever. Apple
really needs to add a CD erasing option to the Finder.
There is no such thing as a Mac-only or PC-only CD-RW, BTW (I have heard people who thought this before! So I'm just making sure

).