Hmm sounds weird. Can you print the screen and post an attachment here so I can see the files?
Print Screen button > open Paint > press Ctrl+V and then save. Just in case.
Daemon Tools is basically a stealth drive. It acts like a CD/DVD drive without having to actually have one. It lets you run CD images (ISOs, CUEs, BINs, etc) which are basically the CD just copied to a computer harddrive and put together for easy use. It just lets you open and run those without having to burn everything to a CD.