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.

Changes:
Virtual CloneDrive 5.3.0.0: 2008 03 26
- New: Supports playback of HD-DVD & Blu-ray images in PowerDVD
- New: Increased performance, if image files are accessed over
the network
- New: Better support for Windows Vista (32-bit only)