While there is an extraction utility built into Windows 7, it is very basic and you may want to try WinRAR for file extensions such as CD/DVD images (.iso) and RAR compressed files (.rar). http://www.rarlabs.com
Personally I am a Win Zip fan I have the latest Win ZIp 14.
I also attained a free copy of RAR 3.80 with the key.
ISO is an archive format that is used to make images of optical disks. These images can be stored and used to replicate the disks. WinZip does not create .iso files, but it can view and extract the contents of .iso files.
RAR is a compression and archiving format. The compression technology is proprietary however the decompression technology is not. WinZip does not create .rar files, but WinZip can view and extract the contents of .rar files.