Hi, welcome to the forum.
I too had this question in mind a while back, but a member named IpseDixit has enlighten me. Apparently, the packed mode is the CD+G subcode format, i.e. the info used for graphics and text, which can be played on certain CD+G compatible players.
Look at this thread:
http://club.cdfreaks.com/showthread.php?t=81488
If u scroll down near to the bottom, a very helpful member (not forgetting the others) named taras_g has a code listed there, that does the conversion, i.e. it converts your raw form into the packed form.
What it does is that it applies the CD+G delays on them. U can see the CD+G delays are in a table named "offsets".
But, I think, this may need attention: only the lower 6 bits of each byte is supposed to be delayed. The upper 2 bits are the normal P & Q bits - same as in raw form. So I think there's supposed to be some sort of skew, between the P & Q with the lower 6 bits.
If I have time, I'll try to test out his source code.
*Note: naturally, if subcodes RW (lower 6 bits) have no data, i.e. all zeroes, u won't see any difference, I suppose you won't even need to apply the process. It's only a problem if you have CD+G data in those parts.