DAEMON Tools supports a wide variety of formats and is a really useful app for accessing your CD collection without having to carry them around, protecting them from scratches in the process. This free version of DAEMON Tools is perfect for the average home user, who will hardly need to emulate more than a couple drives simultaneously. The Lite version of DAEMON Tools only lets you emulate up to four virtual drives but doesn't have the extra features of the Pro and Advanced editions, such as support for DVD HD and Blu-Ray drivers, or the ability to create image files.
You can do this using Finder under the Devices category or access it from your Menu Toolbar.
After installation all you have to do is browse to where your image file is saved on your Mac and 'mount' it as a virtual drive using DAEMON Tools.