1) Install the daemon tool properly
2) Double click the daemon icon and then right click your mouse to choose "Virtual CD/DVD Rom"
3) Choose either Device 0, 1, or 2
4) Then choose "mount image" and then select the CD that you would like to open, ie. Star 2.mdf/mds
From that, the screen should pop open and you can proceed to install the game or simply play it.