Virtual CD (computer software): A way to mount an image on stored on your hard-drive as a CD (whether audio or data CD-ROM) for all intents and purposes. Boring old trivial task on Unix/Linux. This is mostly only an issue on Microsoft Windows - you'll need special software. It'll install virtual device drivers to simulate a SCSI CD-ROM drive, a very limited system (only D:, E:, ..., Z: can be mounted).

Why would one want to do this? I have an 82 GB hard disk. I do a "full installation" of a computer game, and yet it always asks for the CD-ROM, apparently for anti-software piracy purposes. So instead I can do a "minimal" installation and keep an image of the CD-ROM. See also: Why do I bother to take the Porn CD out of the Drive anymore?