A cd rom is one of the standard forms of media. of course Windows 7 supports cd-roms.
I believe what you are asking is how to mount .iso files or virtually emulate a cd/dvd drive. For that, you need Daemon Tools.
An exerpt from their site and what it does
DAEMON Tools Lite
An advanced application for Microsoft Windows which provides one of the best optical media emulation in the industry. DAEMON Tools enables you to convert your physical CD/DVD discs into "virtual discs" so called "images". It also emulated up to 4 virtual CD/DVD drives, so you can mount (insert) and unmount (eject) images.
Are you going to use DAEMON Tools Lite at home personally and not for commercial purposes? If “Yes” then press on “Download” and get it for Free!