Why do you need .cue files?

[Crunk]

If programs like Nero can burn without them? Or maybe i'm missing the concept of it? What's it really for anyway?

[Truman]

A cuesheet is a configuration file for your disc in which you define
the files to be recorded and the starting time of each track and
index. The cuesheet gives you complete control over the layout of
your disc. Every burn software use cuesheets, but most of them don't let you create/edit a cuesheet manually.

[Crunk]

So when you burn an image of say a hard drive backup onto a CD-R, it uses a .cue sheet, but you just don't know about it?

Also, when you create files to be burned (for example - making a VCD), Nero or a burning software creates the .cue sheet without your knowledge (this makes it sound like it's bad) and performs the task?

[Truman]

Yes, too bad, that these companies think, we were all too stupid to work with a cuesheet. I love it to have the full control over the entire process, that's why I use CDRWIN all the time.