Ok, let's clear things a little.
ISO 9660 + Joliet
: Use for CDs. Joliet is a Windows standard for filenames up to 64 characters long; WinOnCD automatically creates corresponding ISO 9660 (short) filenames as well, to ensure maximum compatibility with other file systems such as UNIX and Macintosh.
ISO 9660 + Joliet + UDF
: (UDF Bridge) Use for DVDs, and for CDs with long filenames which must be read on a variety of operating systems. UDF 1.02 is the standard file system for data DVDs. Macintosh systems 8.1 and later support it; there are drivers available for Linux and FreeBSD as well. The inclusion of a Joliet file system on the same disc ensures that all Windows systems will be able to read it.
ISO 9660 only
: Recommended for specialist use only.
: Recommended for data DVDs only.
I've tested the options and found out you can use long file names under "ISO 9660 only" and when you use UDF. That applies for WinOnCD. I think I'll report "a bug" for not accepting "Long file names for NT (128 characters)" option.