burning Swap Magic

I recently snagged up a torrent of Swap Magic, the program that allows you to play burned games on a ps2.  My question is this, can i expect the ps2 to read it if i burn it to a dvd?  And if i burn it, should i leave it in .iso format or extract everything?

Indeed. A genuine Swap Magic will boot just like any PS2 game, demo disc, etc - that's how it works. A burned one won't, because burners can't put in the extra data in inaccessible areas read by the PS2 when booting (whereas pressed discs can and do). The only use for a burnt Swap Magic would be to use its other features that might not be supported by your modchip, like booting from USB (though more up-to-date chips have more features anyway).