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Cue files are text files that are used by cd burning software such as CDRWIN. They are basically scripts that allow you to input the track times and then burn from a single large wave file. If you're using Cool Edit, then I assume you are turning the mp3 into a wave. Then loading said wave. Then splitting the file into seperate files and then burning them to disc. With a cue you can just turn it into a wave (or not, some of the burning programs that use cue files will allow burning straight from mp3), listen to it and write down the times you think the songs change, write the simple script file, and burn it straight to disc without splitting the wave file up.
Of course, the big plus is that now a days you can download alot of cue files which means absolutely no work for you. Just download the mp3, download the cue, and burn (most cues available for download were ripped straight off of the original cd, so another bonus is the track times on your burned copy will be identical with the original).
Hope this helps!
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