> 2. How exactly do I load a CD image to my virtual drive to play a game?
Since you’re using alcohol, just open alcohol and use the mount image option. You can probably also do so from within explorer by right clicking on the .mds file.
> 3. I can mount a game CD-ROM image to a DVD right?
If by DVD you mean a virtual dvd drive such as that created by alcohol, yes. [Obviously, you can’t mount an image to a physical drive.]
> 4. Can I just burn a game image to a CD, load it for virtual drive play, and it use it for installing the game with the same CD? (It’s BF2 by the way.)
In theory, yes but in practice loading an image from a burnt cd/dvd doesn’t always work. Certainly, you should be able to install from the image unless it’s corrupt. However, it may not play.
Also, since the game is a recent release, you may well run into virtual drive blacklisting problems when attempting to run it from a virtual drive. I suggest that you search the forums for solutions to any blacklisting problems that arise. (You will find answers. )
[Nb. ripit has already answered your first question. ]