Depends on the distro but many of them will allow you to do a "hard drive install" where you point the install program to the directory where the iso files are located and the install program will read them and install directly from the isos. You don't need a windows program to read an iso file as linux has that capability natively built in. Linux can natively create virtual drives like cdroms by using "loop". It's all done automatically in these install programs but that's how it works.
You will have to read the distro documentation but many of them tell you to make a special boot floppy or boot cd with the right "image file" and they may have seperate ones for doing network installs, hard drive installs, installs from usb cdroms, etc. Sometimes all the image files are on one boot cd iso and you get a menu when you boot as to what kind of install you want to do. Check out your documentation for the distro you are interested in but that capability is commonly included. I know you can do this with mandriva and fedora for example.
Last edited by kilgoretrout; 06-20-2006 at 12:05 PM.