Virtual CD, Phantom Burner, and supposedly Original CD emulator are the ONLY CD emulators that I know of that have a virtual burn feature and actually emulate a CD in a CD drive. These are the ONLY ones I have found after much scouring. I've heard Original CD emulator sucks, and that the other 2 work just fine. Unfortunately, these cost money.
LOOK OUT FOR FREE CONVERTERS!!! They're not what you want, but they will show up when you search for virtual burners. They are "dummy burners" used solely to burn music to them, and they export mp3s or whatever. Doesn't ever look like it has a disc in, doesn't export an image, none of that. They just convert. Many of these virtual burners are free, but not the kind you guys want.
There are MANY free CD emulators (CDEmu, Virtual Clone Drive, Magic Disk, Daemon Tools, Phantom CD, and on and on), and these 3 are the only ones that can virtual burn, and they cost money. Daemon Tools brags that they are the best in CD emulation, yet they explicitly declared they have no intention of adding a virtual burn feature! How dare they? What's worse is people who think virtual burning has no use, is stupid, and give some other alternative method when people ask for such a program. It's okay to nicely offer an alternative method as an aside, but it's not okay to think virtual burning is stupid and pointless (seen it in other forums).