installing from image
 

I have downloaded the linux CD Image to my winxp partition on my computer...is it possible to build a linux bootdisk with ntfs support (read) so that I can install linux into another empty partition? how? also...how would I change CD (mount another image) during the installation process when I am asked to? If this helps the LINUX distr. I intend to install in RH9

i'm not sure i understand your question correctly. you can specify
where you want to install linux during installation. if you downloaded the cd image then just burn it to a blank cd

I wonder if I can do it without burning a CD...just do a mount on the image file...

Yes you can install without burning to CD but AFIK the stock boot floppy image that installs from the hard drive requires the ISO's to on an EXT2, EXT3 or a FAT32 partition.