I downloaded a ISO file and installed it by mounting a virtual drive but when I try to play it , it asks you to insert the correct disk. Did I do something wrong? Please help! Thanks

The problem lies in CD protections, which, sadly enough, know when you are using an iso so won't let you run the game or program. Although you can get a no-CD crack or patch. These sites should have some (I highly suggest you use mozilla firefox to make sure that your computer doesn't get overloaded with spyware).
www.gameburnworld.com they are listed as fixes.
www.gamecopyworld.com
www.cracks.am
www.keygen.us

another suggestion would be to grab the original exe and throw it into an extra folder (like orig exe or something) then throw the cracked exe into the original destination.

Thanks for replying and you were exactly right. I had to get a crack for it to work but I have to say I enjoyed the process. Now I know what to do with other software. Thanks again.

No problem man, if you ever need anything, forums will always be there:P

Edit: Another option is if you're using daemon tools, right click, there should be an area that says emulation, branch that out and click "all options on"