If you tried installing Daemon Tools Lite version (free version) in a Windows 7 (not sure if you try installing in a Windows Vista) operating system, it will have an error. I tried it myself. So you need to buy the Daemon Tools PRO version if you want it to work in Windows 7.
So what can be your alternative software? You might just be asking how to install daemon tools in Windows 7? I recently bought a new laptop and I have files saved in ISO so I need to have a virtual drive in order to run it. The problem is that I’m using a windows 7. So I searched and googled for possible answers. Here’s what I found.
Slysoft Virtual Clone Drive – This is your answer. It’s basically the same with Daemon tools as it creates a brand new virtual drive in your computer. In other words, it tricks your computer into thinking that it has a CD/DVD ROM drive hardware.
Install the software and you will see an icon in the lower right taskbar of your computer. Right click it and select MOUNT IMAGE. Mound your .ISO files and then run.
Good luck and enjoy.