Yes it is capable of burning audio/video to disc, It burns CD-R, CD-RW (that limits the video to VCD files I think).
It does not burn DVD's only CD's
It reads (plays) CD's and DVD's (these are called ROM for Read Only Media)
so you need to buy CD-R (can only write once to these) or CD-RW (rewritable)
Note that it is CD - R (minus) not CD+R (plus)
here are the specs click here
You need a burning program installed on your computer of course, something like Nero or Roxio or a free program like CDBurnerXP. There should already be one on your computer. You have not said what OS you have but I presume XP?