You need to load your Panasonic RAM drivers for Windows. If the RAM drivers are loaded properly then Backup NOW! will see the RAM media as a Removable Hard Drive and will write to it like a HD. Formatting and erasing the DVD-RAM media would be done using Windows Explorer or My Computer.
I am not sure how this will impact the speed difference you mentioned between DVD-R and DVD-RAM. It is my understanding that we are also working on the support of DVD-RAM directly from Backup NOW!. Once completed, you will not need the Panasonic RAM drivers for Windows when backing up to your drive. Check our website periodically to see when the native DVD-RAM support is available.