Im looking to install Windows 7 on one of my older PCs (i have have an ISO file of it lying around). My older desktop basically has the specs of a net book. 1,128MB of RAM, 1.60 GHz processor etc. Although, it has a CD player only.  
 
 So i was wondering if it was possible or a good idea to mount that ISO image to a virtual DVD drive using something like daemon tools. I actually tried it and the setup process got up and running up until i came to choosing which hard drive to install 7 on.  
 
At that point, it didn't seem right to me because it meant that i was going to wipe that hard drive and replace it with 7 (i was doing a clean install). And the setup and installion process was actually running off my hard drive, which was about to be wiped clean (Does this logic here make any sense?). I didn't go any further but i would like to know if this process of installing Windows 7 would actually work.  
 
I would use a USB drive but i don't have one on me at this time. 

It's good that you thought that, because there's no way it would work. You could, however, if you have an extra hard drive, hook that up and install cross-drive.

Either that or: if your older computer is networked with another computer in your house you could transfer the ISO and technically install across said network.

Also that. Or an external DVD drive, if you want the easy solution. But no one wants easy.

Best bet is wait for at least 3 months after release & see how much trouble the OS in having with compatibility & security issues. Or don't hook this up to the net. But I think M$ requires the net for activation so scratch that. 

The question is; where u got the ISO file from?

" The question is: where did you get the ISO file from? "