Windows – If I format a CD like a USB, can I still reformat it to burn it as an mp3 CD

The music should be in WAV format to be readable from most CD players.
MP3 CD Maker is an easy program with which you can put your MP3's as WAV's on a CD.

Update
As pointed out by @Vdex in the comments, the format is actually RAW audio format which is comparable to WAV without the header information.
Even more specifically it is CDDA, as pointed out by @Joakim.
That's why you need software to create an audio CD from single audio files.
I think if you already have WAV files, you can do this with most CD recording software (choose for create audio or music CD in the first step of the wizard mostly, and then select your WAV files), but MP3's need to be converted to WAV first. That's where MP3 CD Maker comes into play.

Yes, but you need to create MP3 versions of your files before attempting to burn your MP3 CD.

Unfortunately, iTunes cannot convert songs to MP3 files on the fly. To burn an MP3 CD, you need to add MP3 songs to your playlist. It won't work for AAC songs added to it, protected or not.

But wait, there are some good news: You can easily create MP3 version of your songs. Without additional software, right from iTunes.

The menu item to "Create AAC Version" of your songs, as you mentionned it, is in fact tied to your import settings. If you change the encoding format to MP3, the menu item to convert your songs will reflect that choice, enabling you to create MP3 versions of your songs.

Here's how to do it:

1. Go to the iTunes preferences ("iTunes" Menu > "Preferences...")
2. Select the "General" tab
3. Click on the "Import Setting..." button
4. Select "MP3 Encoder" for the "Import Using:" option

You can then see a "Create MP3 Version" item from the "Advanced" menu.

The next steps are simple:

1. Select the songs you are willing to burn as an MP3 CD
2. Choose the "Create MP3 Version" item from the "Advanced" menu
3. Create a new playlist
4. Add your newly created MP3 songs to it
5. Click the "Burn Disc" button located in the window's bottom right
6. When asked, choose "MP3 CD" for the "Disc format:" option
7. Click "Burn"
8. Enjoy your MP3 CD.