Folder2ISO is an excellent small utility which allows you to create an ISO image out of a folder and use it where you want. This is a very good option in case you dont want to pay for the costly softwares reading ISO files.
You can also select different charset for the ISO image. However the disadvantage you get is you canonot add more than one folder which at times will make this useless. All the ISo software I had used has multifilder adding functionality. Via Madhur