Just copying the files to a folder won't work with these tools. You need to create an ISO file of the CD/DVD, which I'm guessing is done with CloneCD but I've never used those programs before. Once you have the ISO file (it'll be one BIG file that represents the CD/DVD) then you use Daemon Tools or MagicDisc (which I know is free; I think Daemon has some restrictions) to mount the ISO file. That ISO file suddenly becomes a virtual CD drive on your computer.
S.