Try using toast or
missing media burner
http://homepage.mac.com/rnc/ <- free
they let you use the full capacity of the CD
You could use gzip or bzip2 to compress your data in the terminal - it's not hard at all. bzip2 compresses better but takes longer.
Copy the files from a CD into a folder called my_folder in parent_folder, do this in the terminal:
1. change into the parent folder
cd /path/to/parent_folder
2. bundle the folder up into a single archive file
tar -cf archive.tar my_folder
3. compress the file
bzip2 archive.tar
you should end up with a file called archive.tar.bz2 in the parent folder.
repeat with all CDs.
burn archive files to disk.
This works on the individual files and not a disk image. Files like images and video are usually already compressed, but if you have mostly text files then you can squish the hell out of them.
I've seen a 2 GB log file compressed to 100MB with bzip2