Actually the 700MB/80min are technically the same thing. A 700M CD-R can hold 80 minutes of CD-quality PCM audio ("normal" CD audio - 16bit, 44khz WAV format), which occupies 700M. If you prefer to fill this space with data, that's you're perogative.
28M of data is not a full CD. When you burn MP3s to a CD (and make the CD playable in regular CD players) the MP3s get decoded into PCM WAV files, which are much much much larger than the MP3s they are created from. Thus 28M of MP3s could theoretically fill 700M of PCM audio. Though in my experience they would have to be highly compressed MP3s (64kbit or so) to do so.
If you were to burn the same MP3s in their native data format (just a regular data CD), then you'd only be burning 28M of actual data to the CD (far less than the 700M capacity), however the CD would only be able to be read by computers and MP3 CD players.
Its 4:30AM and I'm still drunk, so this reply may or may not make sense...
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