some software like Daemon or VirtualCD can do the job
Personally, I use Alcohol 120%. And you might have some trouble with Safedisc-type stuff. Or maybe not; I haven't tried emulating the YR CD yet (since it's almost always in one of my drives anyway ).
Daemon Tools can't make a copy of a CD. I have a CD-writer, so I have Nero, and I use it's Save Tracks... feature and Daemon Tools. It hasn't failed me yet.