The folks over at OSR Online have a handy, no-nonsense and free (as in beer) driver and configuration utility that allows you to mount disk, floppy and ISO images under Windows.
You have to register to get at their downloads, and in return you get a very occasional email as well as a periodic printed "magazine" containing low level windows kernel coding information.
You can find the download at OsrVirtualCdAndDisk; it works like a charm for me.
I've been using Daemon Tools for a long time. Now that I'm on a laptop which doesn't have a CD-rom drive (I'm all about cutting back on weight), it's more vital than ever.
Dr. Evil himself, and not using Daemon Tools :)
And the OSR thingy is extremely light weight. :)
