If it does MP3's then you just drop the mp3s onto the cd as is, no need to convert them.
You can put them in folders, or you can just have them all as one.
personally i put them in folders because i put about 8 albums on one cd, and i like to be able to skip to a particular album at any time, which without folders would be harder.

The .mpc files you need to convert to mp3s ideally.
Your mp3 software will do this, stick to 192kbps for sound quality.

the nfo file is just a txt file containing information about the album and who released it etc. the m3u is just a text file containing the track order (playlist), delete both these.

To convert the mpc files to mp3 have a look here:

http://club.cdfreaks.com/showthread.php?t=103521