this would not be that difficult to set up actually. all you would need to do is too code a custom driver that tells win32 that there is a burner attached to the system. it would show up as just another drive. then you would have the driver take the data it receives and instead of passing it on to the EDIE interface it would put it into a iso file. I think the same thing was done a while ago for audio devices.
now I have not done any device driver codeing, so I could be tragically misinformed but it I am pretty sure that this would work.
http://www.opensound.com/virtmix.html
look at the bottom "loopback recording"
this is for *nix only and not free but it does prove that vitual devices are not imposible.