From the looks of it, a lot of you seem to have CD Text and ID3 tags mixed up. CD Text is what comes up from a normal music cd, ie: non mp3 disc. When choosing to create a cd in nero, you have the option to label the Artist and Title of the CD. I do believe that if your mp3s are tagged correctly, via ID3 tags, nero can import this information and provide you with accurate titles of the songs.
ID3 tags are simply for your mp3 files. There are ID3 v1 and v2 tags, with their variations. It depends on the media player on which it chooses to use. If your head unit supports mp3 cds, then it will obviously be reading these ID3 tags. All of my music uses ID3 v2.3 and my alpine reads them flawlessly.