StarWind Virtual CD

Virtual CD creates a virtual DVD-ROM drive locally to extend your computing infrastructure. A Virtual DVD-ROM emulation allows you to use virtual optical drives when and where you need them.

You can create an ISO or MDS image from your CD/DVD or Blu-Ray/HD-DVD drive with any disk grabbing utility and save it to your hard drive.
Whenever you need to read data or run applications from that image, just mount it as a virtual DVD-ROM drive in Virtual CD. The image will appear as a new optical drive to your system. It can then be used as if it were a local DVD-ROM drive.