I use Virtual CD. It allows you to assign virtual cd drives to any or all of your spare drive letters. Once this is done, you can create images of CDs and insert or eject them from these drives.
I use it mainly for my kids PC as they tended to damage CDs quite often. Obvoiusly you need hard drive space for the images although they can be compressed (high compression will cause a reduction in performance depending on your CPU but probably still be faster the a CD ROM drive)
After the image is created and inserted into a drive (you can do both in one step) then you will still have to install the game as per normal. You have the facility to delete the CD image from within the software and would also have to uninstall the game as you would do normally.
Starting the game would be the same as for a normal installation.
I have been running the software for about six months and the only hiccup I have had was that it suddenly assigned the real CD drive to drive W: but this has not been a problem with any CD usage at all.
Let me know if you have any further specific questions.