I use Daemon Tools Lite, which is free. You just install it, which creates a virtual ("pretend") drive, and mount the iso. You could also try Alcohol 120%.
My Computer
At a glance
Windows 7 Home Premium x64 SP1AMD FX-6100 Six-Core 3.30GHz6GB DDR3-1333MHz SDRAM2GB DDR3 nVidia GeForce GT 530
I have been using Slysoft's Virtual CloneDrive SlySoft Virtual CloneDrive for a longtime now. A simple, no-frills and reliable driver that does not muck up the system in anyway.
Coupled with mikinho's Mount Image Mikinho | Mount Image which adds the ISOs to the media library, it mounts and plays the ISOs in W7MC.
Microsoft Windows 7 Home Premium 64-bit Servi...Intel(R) Core(TM) i3 CPU M 330 @ 2.13GHz8 GB DDR3Intel(R) HD Graphics
Computer type
Laptop
Computer Manufacturer/Model Number
Hewlett-Packard/G62-107SA Notebook
OS
Microsoft Windows 7 Home Premium 64-bit Service Pack 1
CPU
Intel(R) Core(TM) i3 CPU M 330 @ 2.13GHz
Motherboard
Hewlett-Packard 1425
Memory
8 GB DDR3
Graphics Card(s)
Intel(R) HD Graphics
Sound Card
Realtek High Definition Audio
Monitor(s) Displays
Builtin
Screen Resolution
1366 x 768 x 32 bits (4294967296 colors) @ 60 Hz
Hard Drives
250 GB SATA Hard Disk Drive 7200 rpm
2TB Seagate GoFlex USB 2 Drive
1TB Iomega Prestige USB 2 Drive
1.5TB Iomega Prestige USB 2 Drive (Samsung)
2TB WD MyBook Live NAS.
Yes you actually can. Just use winRar, but there's no need to extract the files to your desktop.
You can follow this guide install .iso files without cd or usb | PcParrot which I followed as well.
I installed windows 8 using that without any problems!