To the OP, yes the Honda Nav unit will display BOTH the folder and track titles on the nav display when in the audio mode. This applied to BOTH MP3 and WMA titles.
I'm not sure how you are burning your disc, but I have found the best way (on both Mac and PC) is to drag and drop the names MP3 folders onto the disc, then burn. Both iTunes and Windows Media Player will automatically save your album as a folder with the title of the disc, so this shouldn't be an issue assuming you are ripping your own music to MP3 or WMA. If you pirated it or purchased online, then I'm not sure I can help.
As a nice feature, the burned MP3 disc will not only show what is playing, but you can select the "track list" feature and see all of the folders on the album, along with tracks from each. These tracks are selectable so you can jump around on the disc without having to "skip" to the track you want.
Someone mentioned bit rate for MP3s. If you are using the Aux input, it will depend on the DAC of the player you are using, and I could probably understand going as low as 96kps if you just don't care. Below that, there is very clear distortion of the sound, particularly in the sub-500 Hz range. I rip everything at 256 kps, which is effectively lossless. You can still fit 6-7 albums on a disc, which gives me around 40 albums at my disposal at all times, and they sound as good as the original!