My DC doesn't always recognize the cd-r's as games either, it sometimes thinks they are audio cd's. But one or two restarts usually fixes it. I think this is normal as both of my DCs and my bro-in-law's does the same thing.
A small inconvience for cool cheap games.
I don't think CD-R brand really affects anything... I just buy whatever brand is cheapest at Big-Lots that week.