http://www.cdrfaq.org/faq07.html#S7-12
quote:
If you scratched the top (label) side of a CD-R, and it no longer works, your disc is toast. (If you scratched it, and it still works, copy the data off while you still can.)
If you scratched the bottom side, then all you've done is etch the polycarbonate (plastic), and it can be repaired like any other CD. A common misconception is that the data is on the bottom, but if you examine it carefully you will see that the data is beneath the label. The laser reads the data through the polycarbonate layer, and if the layer is scratched the laser will refract onto the wrong part of the disc.
That FAQ is about CD-Rs, but I assume the same applies to all CDs...