I was initially going to answer your post in the usual fashion - point by point. But it then dawned on me that that might not be necessary.
Let me get this straight.
You have a screenplay that has come on 2 CDs. The CD file(s) are in .mp3/.mp4 format.
I would suggest that, firstly, you forget about ROXIO. A program is only as easy-to-use as the programmers have made it, and you are attempting something that ROXIO can't do, and is misleading you with its daft error messages.
Please understand that a file in .mp3 OR .mp4 format is, by it's very nature, a compressed audio file. Further compression is not possible from 'outside' the file: you [u]can compress it further[/u] but not with ROXIO. Indeed, if these files are only dialogue, there is little chance that any further compression could be efficiently applied to the files.
If I remember rightly, you are attempting to copy both CDs onto other CDs.
There are TWO ways this can be achieved:
1. You copy the entire contents of both CDs onto your harddrive, then copy back out to another TWO CDs.
2 You use a suitable program and clone the discs directly to new blank CDs.
Without knowing the exact details of the files on these CDs I cannot see any way that you will adequately achieve transferring the contents of TWO CDs onto ONE CD.
Modern music compression techniques are moving forward all the time but compression does have a finite limit. I am guessing you may be pushing back the envelope a bit too far.
If you have details of the file formats, sizes, number of files (per disc) post back and I'll try to help further.