I am running Fedora 8 and installed via rpm and had nearly the same problem and that being lack of documentation. I went to the cdemu mail list archives and found a way that works for F8 and probably the same for any distro.
I opened a terminal as root user and entered:
Code:
# cdemud --daemonize --num-devices=1 --system-bus
then changed directory to where a video.iso was in my home directory and as regular user enter eg:
Code:
$ cdemu -b system load 0 image.iso
and the image loaded and played so now at least I know cdemu works but haven't tried it on any other image files yet such as bin,cue,nrg etc.