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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.

Features:
Mounts images as virtual drive
Supports all common image formats such as ISO, BIN, IMG, UDF, DVD, and CCD
Emulation of CD, DVD, and Blu-ray media
Supports up to 15 virtual drives at the same time
History of recently mounted images
Automount last image
Unmount image with eject button
Seamless integration in Windows Explorer context menu
Easy to use – just double-click an image file to mount as a drive
Virtual CloneDrive is freeware, you may use it at no cost

Changes in Virtual CloneDrive 5.4.9.0:

Change: Windows 7 uses scsiport driver instead of storport, fixing rare compatibility issues
Fix: ElbyCDIO was not restarted after uninstall
Some minor changes and improvements