Since Wing Commander Prophecy was originally to be developed for the Playstation, it makes sense that the team would be looking at what went wrong with WC3 PSX. Some interesting comments here, especially about centering for the TV. Note that the issue about the discs scratching likely refers to the original 'big box' version of the game which included plastic sleeves instead of a jewel case.
These updates are thanks to John "Captain Johnny" Guentzel, who provided several CD image archives of material used by the Wing Commander Prophecy development team!
Wing Commander 3 PSX Post Mortem
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Date: April 23, 1997