Hi Greg,
Yes, the Blue-Ray burner can read and write Blue discs, DVD, DVD Double Layer and CD discs as well as the mini DVD and CD discs without problem, the same as the regular CD/DVD drive.
You can buy the blank Blue-Ray discs on the E-bay or Amazon. Here you can find them:
Sony blu ray blank disc BD-R blueray 25GB 4X bluray,
blank-blue-ray-discs and
Verbatim Recordable-Blu-Ray-10- Dual Layer Discs. I think you can buy them at the computer stores, too..The blanks are still rather expensive when you compare them to the standard DVD or CD discs.
Cheers...