I have always used Daemon Tools for mounting ISO files but it seems that it isn’t compatible with new Windows 7. Fortunately I managed to find alternative software that does the same and is simple to use. It is called Pismo File Mount.
Btw if you didn’t know, burning an ISO to a CD/DVD is built in feature in Windows 7 – Just right click on an ISO file, select Open With and Windows Disc Image Burner. How cool is that!

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