How to make an ISO
What you do is making a normal virtual CD. If you want to create an ISO file (e.g. in order to keep it compatible with other programs), please see here. But: If the copy template you choose contains settings that are not applicable (or not logical) for creation of the particular image file, Virtual CD automatically corrects those settings. For example, if you select the v10 - ISO Copy template (for creating ISO images) but the source is an audio CD, Virtual CD automatically creates a virtual CD, because audio CDs cannot be created as ISO images.