http://www.virtualcd-online.com/
You can create CD images, that play from a "Virtual CD drive."
Sometimes you can compress the VCD image and it will work.
sometimes it wont. mostly for games and such, that are super sensative to how the CD is actually created. I have had some that worked, but Halo PC ® ™ wouldn't work until I changed some settings around.
It isn't a DOS program, and I probally isnt what your looking for, but is better than nothing. Hope this helps.
Winamp 2.XX for life! Screw that new B.S.