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yes it does have a burner.
you could burn music files with iTunes... but your best bet is to get Toast Titanium 7 (or 8). It's user-friendly. you can burn data files, music files, movie files (to be watched on DVD players) and more.
Other programs like iPhoto and iTunes have their own burn managers, which can simplify things if you're making audio CDs or other content. Do be sure to go to iTunes' preferences before you burn a disc there, however, since you can specify whether or not you want to burn a data disc (for backup) or an audio CD (for listening).