Step 1: Download the MagicDisc Freeware
The MagicDisc Freeware can be downloaded from their website at: http://www.magiciso.com/tutorials/miso-magicdisc-overview.htm Once on their site, choose the version for your operating system. Save it to your local computer somewhere (make sure you know where you saved it). Currently they have versions for Windows 98, ME, 2000, XP, 2003, 2008, Vista, and 7. I personally have only used the XP/Vista version, but I'm sure they are all the same and as good as this version.
Step 2: Install the MagicDisc Freeware
Once you've downloaded the software, run it by either choosing run from the download window or by locating it on your harddrive and double clicking it. Once executed, you may be presented with a Windows Security Alert. If you are, choose to the "Install this driver software anyway" even though windows cannot verify the publisher.
Step 3: Verify the software is running.
Your MagicDisc software should display an icon in your system tray (near the clock on your taskbar). Verify that this icon is showing. If it isn't, then you will need to locate the software under the Start >> Programs >> MagicDisc and run it.
Step 4: Mount the Virtual Drive
Right Click the MagicDisc icon (see Step 3) and go to Virtual CD/DVD-ROM > X: No Media and click Mount ...
NOTE: X is just a place holder, this could be any letter
Step 5: Select the ISO from your local computer
Once you're clicked "Mount ..." you will be prompted to select your ISO.
Step 6: Run the new software
If the software your just mounted had autorun setup then it likely just ran itself. If not, you'll need to navigate to My Computer to access the newly created drive.