With a multitracker, you record one, two, 8 or however many inputs you can handle at a time. These all result in individual tracks that you have volume control, panning, effects, EQ control over.
As well, you can keep adding tracks, up to however many your computer system can handle before bogging down.
Once finished with the song, all levels for each track, panning, FX, EQ etc. are set, this can than be mixed down to a stereo wav file consisting of all the individual tracks.
This is a where a wav editor comes in - i.e. Wavelab, Soundforge, Goldwave.
Which the wav editor you can chop off noise at the start of the song, do fade outs at the end, do further eq'ing, compression etc..
With this wav file, you can than burn it to your CDRW and call it a day.
Wavelab, Soundforge and like will work with multiple 2-track stereo wav files opened, but not more than 2 tracks can be playing back or recording at the same time.
Hope this helps.