I was looking for an alternative to Daemon Tools for creating virtual CDs & DVDs from ISO files because I don't trust Daemon Tools anymore. Even if their their download page displays this warning, I still don't trust them.

This version has an option to install client-side software applications (DAEMON Tools Searchbar and Save Now) that deliver a limited number of behaviorally targeted and contextually relevant coupons, ads and comparative shopping results directly to consumers desktops - without compromising the privacy, security or smooth functioning of peoples computers! No URL hijacking or redirects! In order to support FREE distribution of DAEMON Tools we highly encourage you at least to try out this optional software! (you can remove it anytime later when you wish: via Control Panel-> Add/Remove Programs)

So I was looking for a free alternative that would work in Windows Server 2003 64-bit and I found MagicDisk from the makers of Magic ISO Maker. They also have a 32-bit version.
http://www.magiciso.com/tutorials/miso-magicdisc-mount.htm
The installation does not require a reboot and It could not be any easier to use:
- Right click MagicDisc trayicon

- Select "Virtual CD/DVD-ROM"

- Select one of virtual CD/DVD drivers. (for examples: K: No Media)
- Click "Mount"

- Browse and select the CD/DVD image you wish to mount.
- Click "Ok"