Burn a CD in Mac OS X that can be read by Mac OS 7.
This guide will tell you how to burn a CD from within OS X that can be read by OS 7.6.1. I haven't been able to verify whether or not this works with 7.5.x or 7.1.x.

The basic principle of this tutorial is creating a disk image in OS X, then formatting it as a Mac OS Standard disk, then dragging your files to the disk image, then burning the disk image.
Step 1
On your OS X computer, launch Disk Utility, which can be found in your "Utilities" folder inside your "Applications" folder.
Step 2
In the window that appears, click on the "New Image" button. Give it a unique name, and make sure to save it to the Desktop. Set "Size:" to the size of your blank CD media. Set "Encryption:" to none, and set "Format:" to read/write disk image. Click the "Create" button when you are finished.
Step 3
After the disk image creation process has finished, you should see your disk image in the list on the left hand side of the Disk Utilities window (as well as on your computer's desktop). If you do not see it there, you did not save it to the desktop, and you'll have to find it.

Highlight the disk image you just created in the Disk Utility list. Then, click the "Erase" tab, and and select "Mac OS Standard" from the "Volume Format:" drop down menu that appears. Give the new disk a name such as "Mac OS 7 Stuff" by entering it in the "Name:" field. Note that this will be the name of your mounted disk, not the name of the image file. Once you have changed these two settings, click "Erase." The new disk should appear mounted on your desktop.
Step 4
Minimize the Disk Utility window to get it out of the way temporarily (we'll need it again in a moment). On the desktop, start dragging the files that you want to bring to your OS 7 computer into the newly created disk image. Keep in mind that if you downloaded software from this or any other web site, it is best to keep it in it's original compressed image format (such as .sit, .bin, .hqx, or .img). If you don't your icons and icon placement will probably not transfer to OS 7 properly, because Mac OS X does not maintain a proper classic desktop database.
Step 5
Once you've dragged all your files into your "Mac OS 7 Stuff" CD image, go back into Disk Utility, make sure the disk image is selected from the list, and click "Burn" in the upper left-hand corner of the Disk Utility window. You will be prompted to insert a blank CD if you have not already done so.
Conclusion
Congratulations, you should now be able to read this CD in any Mac OS 7.6.1 computer with a CD-ROM drive. Be mindful that some early CD-ROM drives physically can not read burned CDs, but so far most people seem to do just fine following these instructions.

© 2010 System7Today.com.
The Apple Logo, Macintosh™, Mac OS™, and others property of Apple Computer, Inc.
This site is in no way affiliated with Apple Computer, Inc.