I would solve in this way:
1) create the iso image form the cd
2) create an ibay, let's say "virtualcd"
3) copy iso image in /mnt/virtualcd/
4) edit /etc/fstab and add this line:
/mnt/virtualcd/yourimage.iso /home/e-smith/files/ibays/virtualcd/files iso9660 ro,loop,auto 0 0
5) mount it with
mount -a
done.. you can create as much virtual cd as you need/want
I'm using this approach with a customer of mine, with dvd's iso images
HTH