Grub - Booting an ISO image
 

Can you configure Grub to boot an ISO image?

i'm not 100% sure about making it boot the ISO image directly, but i'm pretty sure you can copy the ISO image contents to the hard disk and then configure grub to boot it from there... this might be useful if your main objective is to not have to burn CDs to test an ISO...

just my two cents...

You can, if you have the room on your hard disk, create a partition and format it for CD instead of Linux filesystem. Then burn the iso image to that partition.
How to set up the grub.conf (or menu.lst) to have grub boot that image is another question. Since I read your post, I've googled and not found an answer on how to configure grub to boot such an image.
Perhaps others may have a better answer.

I found these instructions. Hope they help.