Virtual CloneDrive works and behaves just like a physical CD/DVD drive, however it exists only virtually.
Image files generated with CloneDVD or CloneCD can be mounted onto a virtual drive from your hard-disk or from a network drive and used in the same manner as inserting them into a normal CD/DVD drive.
Probably the best virtual drive software, Virtual CloneDrive allows you to enjoy the freedom of a virtual drive and is completely free.
http://static.slysoft.com/SetupVirtualCloneDrive.exe
An IBM-compatible personal computer with a minimum 500 MHz Pentium-class microprocessor (1 GHz recommended) and 128 MB RAM (256 MB recommended) Windows 98, Windows ME, Windows 2000, Windows XP, Windows Vista or Windows 7 (32 or 64 bit)
If you use Windows 2000 or Windows XP you must be an administrator to install Virtual CloneDrive.