ISO Recorder is a tool, that allows to burn CD and DVD images, copy disks, make images of the existing data CDs and DVDs and create ISO images from a content of a disk folder: http://isorecorder.alexfeinman.com/isorecorder.htm.
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UNetbootin allows you to create bootable Live USB drives for Ubuntu, Fedora, and other Linux distributions without burning a CD. It runs on Windows, Linux, and Mac OS X. You can either let UNetbootin download one of the many distributions supported out-of-the-box for you, or supply your own Linux .iso file if you’ve already downloaded one or your preferred distribution isn’t on the list: unetbootin.sourceforge.net.
Also check Rufus as alternative.
Image files 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: http://www.slysoft.com/en/virtual-clonedrive.html.
Popular open source file archiver with a high compression ratio. Supports packing/unpacking of file-formats like 7z, ZIP, GZIP, BZIP2 and TAR. Unpacks: ARJ, CAB, CHM, CPIO, DEB, DMG, HFS, ISO, LZH, LZMA, MSI, NSIS, RAR, RPM, UDF, WIM, XAR and Z: http://www.7-zip.org/.
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