The drive you have will read CDs, DVDs, and also burn CD-R, CD-RW, DVD-R and DVD-RW discs.
Apple only officially supports DVD-R burning (IE, write once discs), but I have used DVD-RW (write and erase to write again discs) in my Powerbook drive with no problems. I have the same model drive as yours here in this 15 inch Powerbook.