s this "iso" file a full disc image, or a volume image?
I select the drive when I'm making them. I used imgburn and/or infrarecorder (I believe both will do it) on a Windows 7 machine to make them, then others have downloaded them and burned them from Macs and PCs in the normal way you'd burn an ISO image and reported back that they successfully boot on their machines. I've also burned these images to CD-RW discs and have been able to boot systems such as my Power Macintosh 8600 with them.
I haven't made ISOs of any discs that I know off hand to be multi-session or otherwise need the bin/cue treatment. However, if what I'm reading here is that making an ISO of the drive will work and be sufficient, then I think that's encouraging.
If you'd like to check, all the files I've done this way are here:
http://personal.stenoweb.net/oldmac/
Currently, I'm only doing this for files that people request before I can get them on vtools, and my thought process here is that it may only be important to produce modern-compatible files for CDs that are used to boot machines for whatever reasons. I don't see a reason to, say, image a Microsoft Office install CD or a MacAddict coverdisc this way (even though, I did do those things) for the purposes of VTools, because the image can be transferred to a target Mac over the network and mounted without using optical media. (In many cases, images on vtools can be mounted directly over the network, but I have a 40/20 connection and I use it for other things as well, so performance won't be as good as if you copy to local first.)
As far as tools for bin/cue files go, it looks like Imgburn can read them as well.
Perhaps just imaging at vintage speeds is what is required.
Just casually, Apple started shipping 24x CD drives in 1998ish and then literally never shipped a faster CD drive at all. If you're using Apple's USB external drive, it's not any faster than what's in a Beige G3 or an original iMac.
That said, you should be able to put a faster/newer drive in a Firewire enclosure, and
at the very least you would benefit from a younger mechanism. I've mentioned this before, but my HP PC from 2011 can successfully read CDs that some of my vintage Macs aren't fully able to read. (840av and PB1400 in particular, I don't remember if I tried my 8600 or Beige G3.)
So, I'm definitely not over here suggesting we use, like,
very old machines to do this.
The other thing that hasn't been addressed is how we name files. Vintage Macs using the HFS and HFS+ file systems have a 31-character file name limit, including any extensions that are included, either from DOS or from modern tools.
Notably, on VTools anyway most of these files will be in their own directories alongside readme files with more information, so if, say, an Apple CD part number is used, the read-me file can explain what each file is. Similarly, if you have a diskette image called "Installation 2" inside the System 7.1.2 Pro folder, you can presume that that's Installation 2 of the 7.1.2 Pro media set, and not the 7.5.3 media set.