"File system:" - select file system for ISO image (very important).
"ISO/Joliet (ANSI)" - ISO 9660 file system which is used for compatibility - use this for ISO images for non-PC use (car, home audio, home video, etc.). It has 2 GB maximum limit per file and uses ANSI code sets for saving filenames.
"UDF (Unicode)" - UDF 2.x is latest files system for discs. It has "unlimited" file sizes and uses Unicode for saving file names which makes it best option to use. It has very limited compatibility with anything that is not PC.
"File List" - as you can see, there are separate buttons for "Add File" and "Add Folder". By using these buttons, you can select files and folders that will be burned. Once you select files and/or folders, they will be added to the File List and displayed. If you wish to remove an object from the list, simply select it and click on the "Remove" button or use "Remove All" to clear the complete File List.