Select the "Installer Disc Image File (ISO)" option in the New Virtual Machine Wizard and browse to the ISO file. VMware will install the operating system from the ISO file onto the virtual machine.

How to Browse ISO Files. An ISO image file holds an exact copy of an optical disc in one single package. ISOs are often used to distribute or duplicate the entire contents of a CD or DVD in a ...

I am running VMWare 4 on OS 10.7.2 and need to mount the file system, add a file and be done with it. Apparently this was easy in Fusion 3, but not now.

After that, switch to the CD/DVD (SATA) section. On your right-hand side, select the Use ISO image file option. Click the Browse button and choose the ISO image file of your Windows OS.