So it doesnt like the ccd based images. I might be able to convert them to iso though and see if it will work that way. Might give that a shot tmrw. Thanks for the suggestions.
If that doesnt work I will see if I can make cdemu from source with the make files. Never hurts to try something new :P

In my case yes. I have a couple iso image and ccd images made with virtualCD that I would like to mount and use. The installers look for a CD drive.

Source on Git:
https://sourceforge.net/p/cdemu/code/ci/master/tree/