hey man i feel your pain. i just went through the same thing yesterday.
open VCD put a check on all three boxes and select the number of drives you want( 1 should be enough be cause you can just unmount the ISO's and mount another one just like changing the disc in you DVD drive). hit OK the open your computer file to view your drives. there you should see a drive with the sheep head logo.
If you already have ISO files on your computer, just right click the virtual drive. scroll down to virtual clonedrive and select mount. it will bring up an exlorer window. then find and select your ISO.
If you need to create ISO files. download "ISORecorder v3" its freeware and its simple to use. after install its in your right click menu. put a disc in your drive. open your computer file and right click your CD/DVD drive, select "create image from CD". this will start ISORecorder.