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UDF format is simply just another way that CDs can be written.
What's a 'UDF' formatted CD?
ISO 9660 is the standard for CD's that has been used for many years defining how CD's are witten. UDF (Universal Disk Format) came along with DVDs and is being used on other media as well.
I found this article: Which DVD / CD format: ISO or UDF? that explains in a little more detail.
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