I am a musician and I just bought a Sony RCD-W500C compact disc
recorder.  I am compiling CD's of my original music from various CD's
I have made in the past.  Because of its re-writable properties, it is
easier compile a CD of individual tracks from various CDR's using a
CDRW, then burn CDR's from the master, which is the CDRW.  However,
having the best possible sound quality is important to me, especially
with recordings of my own, original music.  So, my question is, will I
lose any audio or sound quality in the finished product by taking this
approach?  Do music CDRW's cause any loss of sound quality in CD
recordings?

Since writing to CDRW is a digital process, just like writing to CD,
there should be no loss as a result to writing to CDRW.  Digital
copies are different from analogue copies like vcr or tape in that
they are perfect every single time.  This means, provided there is no
media or hardware problem with your writer every single copy you make
should be identical regardless of the number of copies made.

However, CDRWs have a limited number of rewrites you can do to them
before the media fails (that is they become unreadable or will not let
you rewrite).  This number as reported by manufacturers is usually
around 1000 rewrites...however some people report real world use of
maybe 100 rewrites.  So, provided you don't make a lot of rewrites
while compiling your cdrw master I imagine your process should work
just fine.