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.

Virtual machine programs such as VMWare allow you to quickly install a number of different operating systems on one machine. The majority of these virtual machine programs allow you to load an ISO ...

This article explores the possible causes and suggests what you can do if your Virtual Machine won't boot without the ISO file.

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.

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.