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Well.. it all depends on how you have them on your system.
If you have them all installed in your Windows/Fonts folder.. that is not a good idea. These fonts must be loaded and searched through everytime you load up a program like Word, photoshop, etc.. this will significantly slow down your program access.
It is a much better idea to use a program like Font Expert (my current favorite) to review all your fonts and only install those that you need when you need them. Once you are done, you simply uninstall that font until you need it again. Of course, fonts you do seem to use all the time can be left installed... but if you have 5000 extra fonts installed... bad idea!
As for backing them up to CD.. good idea. But - like Sonie said, they really don't take up much room on your HD in the scheme of things.. so I would just use them from there. However, if you did just want to use them from the CD, then a program like Font Explorer is prefect.. you just insert the CD with the fonts, browse to the CD in the software, pick the font to install, install it and then use it. The CD can be removed once the font is installed.
Good Luck!
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