[Osiris]

Bin and Cue, Img and Iso files are CD and DVD formats that store all the information of the CD or DVD. Users come across them on many occasions such as Linux distributions, Open Source software distributed on CDs and of course when downloading files from P2P networks, FTP, IRC or the Usenet.
All formats can be burned to CDs or DVDs depending on their size using a DVD burning software like Nero for instance. Another method favorited by many is to mount those images as a virtual drive. This lets the user access the contents on the CD or DVD without burning it first.
Pretty good if you just need to install something or watch a movie that was distributed as a bin, cue, img or iso file. Several softwares exist that can mount those filetypes, one is named Daemon Tools for instance.
You would simply create a virtual drive in Daemon Tools, browse to the location of the image file on your hard drive and select it from there. Daemon Tools will do the rest and make the contents available for further use.
This is an excellent way to store CDs and DVDs on your computer. Great if you are traveling and do not want to take the original discs with you or to save power when using a notebook. It essentially means that you do not need to use the installed CD or DVD drive which saves the power.
Microsoft is offering a free unsupported software as well that is able to mount those files if you are using Windows XP.
Read More:
Microsoft Win XP Virtual CD Control Panel