Creating a Virtual Cd


I currently use the Rosetta Stone software, which requires the data CD to be in the drive for the software to run. (When launching the application, the program searches for the CD) I can run Rosetta Stone when I have the data CD in the CD-drive, but I want to be able to run Rosetta Stone without the CD in the drive. I want to create a "virtual cd", so the program 'thinks' there's a CD in the drive.
I've tried creating a .cdr, and mounting that with Disk Utility, but no luck..... perhaps if I can mount the .cdr I created through the console as a "CD-rom"? I'm not exactly sure how to do that, though - is it even possible?
FYI - I'm on 10.4.2
Any help would be appreciated.