The advantage to a component CD burner is that your stereo system is built to allow you to record from one format to another; the end result, soundwise, is pretty good.
The disadvantages are, as described above, the need to sometimes manually cut tracks while recording and the fact that Audio CD-Rs (as distinct from Data CD-Rs used with computers) seem to cost about a dollar per CD, while data CD-Rs are about half of that. Perhaps there are newer models that can use data CD-Rs instead of audio CD-Rs. I don't know.
I found that I could use the cassette headphone jack as my output and run RCA plugs to the recorders Line-In inputs in the back.
As you said the recorder has trouble seperating tracks.
So I take my CD over to my computer and run a program called Audio Cleaning Lab. It's made by a company called Magix. It's on the web www.magix.com.
It allows me to seperate tracks, boost the sound, dehiss, and de-click the recordings (if scratched), and cut and paste songs.
I bought it at Best Buy for 40 Bucks. Then it allows my to burn it back on a cd or convert it to an MP3 file.
I usually make it an MP3 file and store it on the computer.
With NERO I convert it into a data file and store it on a CD.
You can get up to 200 songs on a CD this way. And anytime you want that song you can bring the CD back and with NERO drag and drop any songs from the CD to make an Audio CD.
That's because the entertainment industry extorted itself a big fat cut in exchange for not tying the technology up in lawsuits.
(The industry is back demanding more, proving the accuracy of Kipling's observation about the result of paying Dane-geld.)