OK, once you un-RAR that first file you should get a file with the extension "ISO". This is the data track of the game and you don't need to extract anything from it, although WinRAR can open these files. So just make wav files from the mp3s, check that the filenames in the cuesheet correspond to the real filenames (you can use Notepad to edit the cuesheet) and burn the game.
(If you can't see the file extensions in Explorer, go to Tools/Folder Options.../View and uncheck "Hide file extensions for known file types".)