There's another solution which achieves the same end (ie a 'virtual' drive)
http://www.softwarepatch.com/windows/xpvirtualcd.html
But first you need to convert the CD contents to an 'ISO' file with this:
http://isorecorder.alexfeinman.com/isorecorder.htm
However, if you own nero 6 or higher, that includes an application called
"ImageDrive" which is all you need for what you want to do.