A virtual CD rom is Simulated version of CD is used create a image of the Disc and stored in hard disk for future without the trouble to insert the disc every time one wants to use applications like Oxford talking dictionary, which asks for cd to inserted every time you run the application. Hence such simulated software actually trick the program by actually acting to extract the data from a disc located at a remote desktop, as if they are connected by a network, while the disc sits on the hard disk all the time. One such great, light in size and CPU consumption is Deamon tools.

Here is Tutorial to how to use Deamon tools:

You Can Get Daemon Tools From Its Original Website

After the normal Installation Comes the Mounting process:

1. After Installation, An Icon Shows On Your Desktop

2. Double Click It, Look At Bottom Right Corner

3. An Red Lightning Bolt Should Show Up

4. Right Click It

Upon Right Clicking It:
1. 5 Sections Will Pop Up (Virtual CD/DVD Rom, Emulation, Options, Help, And Exit)

Only Need To Focus Mainly On The Virtual CD/DVD ROM Part.

Mounting Process:
1. As You Move Your Mouse Over Virtual CD/DVD Rom, More Options Appear

A. Device 0 – No Media
B. Unmount All Drives
C. Set Number Of Devices

2. Go To Set Number Of Devices, Hit 4 And You Notice Now That There Are Device 0, 1, 2, And 3

3. You Can Mount .Iso, .Bin, .Mdf Files With Daemon Tools

4. So Now You Go To Virtual CD/DVD Rom, Device 0, And Select Mount Image

5. Now Find The Iso Or Bin Or Mdf, Mds And Click Open

6. An Autoplay Should Pop Up, Allowing You To Install The Game Or Application
Note the earlier Version of Deamon tools has been reportedly not compatible with windows Vista and hence a new Deamon tools 4.1 or higher version have to be used for Windows Vista.