"What good is a Virtual CD if you don't know how to create ISOs?" I hear you ask...

Well try this great freeware ISO creator. http://isorecorder.alexfeinman.com/isorecorder.htm
It's an "XP-Powertoy" for basic ISO creation on-the-fly. Once installed, it appears in your right-click context menu. You just right-click your CD drive and choose Copy CD to image file. Easy as that