I have started using Reaper lately & although it's not freeware it's more in the style of what students will be using in the real world. It handles all sound multitrack recording, Midi, VST & more if needed. It has loads of plugins available & Will install on a key drive easily...in fact it has a Start Menu item to automate this for you. The installed Reaper folder on the key drive comes in at 138Mb with 114Mb being tutorial video's...so your students can study at their own pace.
There are options to render the audio from the program which again is very much like a pro set-up (Cuebase, Logic etc) at which point they select the output file as "Audio CD Image" & Reaper will also ask if you want the file burnt straight to CD. Very handy.
Reaper has an evaluation period of 30days after which time they like you to buy a license...but the amazing thing is if you don't buy a license you will keep ALL the functionality of the paid version but only have to read a 6 second reminder every time you boot up. That is VERY reasonable of them. There is a great big PDF as a manual for free download & also a barebones online Wilk.http://www.reaper.fm/
If you work in a schools the your head Council Tech Guy will have some ideas of programs & they may even have some licensed already or be prepared to buy something. I was witness to a computer teacher go from "knowledgeless" to having a fully operational school radio station in about 3-4 months which the help of someone at her local council (to deal with network issues etc).
I use CD Burner XP as I burn lots of file formats & it's drag & drop & I have set the program so my kid (11) can just click burn & put a Cd in it'll do the rest.
All the best.