Please if you see anyone asking about their Blue Screen of Death issues on install please direct them here.
It is caused by an IAstor.sys error which is related directly to Intel Rapid Storage Technology. Ideally they need to update it manually directly from Intel, but since the program is extremely nonessential they can go ahead and uninstall it.
At this point, you will need to reinstall WinCDEmu and you will get the problem fixed. If you do not have Intel Rapid Storage Technology available in your programs list, it may be caused by Intel Storage Management instead, but usually the first one as it comes bundled with most ASUS and ASROCK motherboards.
I had the same issue, not only with WinCDEmu, but with all virtual drive emulators I could think of (WinCDEmu, Daemon Tools, all WhateverISOWhatevers, you name it). I only couldn’t test/try Micro$oft’s Virtual CD, because it couldn’t read or recognise any of my disk images. Anyway, all those programs installed fine, but crashed the System (BSOD) immediately after selecting an image to mount. Removing intel’s Rapid Storage Technology solved the problem (and because it’s pretty much a useless appendage, I didn’t sense any drawbacks).
I know this is an old post, but it was really helpful and other people may be having similar problems with other drive emulators.