both types can record whatever you want to put on there. DVD's have a much higher capacity, at 4.7GB for a single layer DVD (twice that if you get dual-layer discs - first make sure your dvd-rw can write dl/dual-layer discs). CD's only have a maximum of 700MB of storage, far far less than a single layer DVD.
DVD's also are designed to hold big files in mind, like a movie, or a complete image of something (an o/s if you will). CDs are basically used to store a photo album or just to make an audio cd nowadays. DVD recorders are so cheap (35 bucks for the NEC 3550A on newegg) that CD burners are getting obsolete. not saying that they will die out tomorrow, its just that dvd's as a whole are getting cheaper to make and manufacture.