From: Sunnyvale, CA (Unite
Audio and Video formats use the Mode 2 setting, to take advantage of the extra space it can provide. And since one bad bit will not affect the outcome of a Song or Video. Meaning for Audio, the human ear can not detect the missing bit, and in Video, you can not see the missing pixel.
But if you are creating a Data CD, to store the MPEG or WAV file on the CD, you should still use Mode1, as this is still in a Data format, and one bad bit will cause the MPEG file not to open, or the WAV or audio file to get a poping noise or white noise, when you do finally convert to CDA, or just play from the HD.
All Mode 2 does, is not use the ECC or Error Correction Code to prevent a bad bit from occuring.