Daemon Tools is a "standard-issue" tool that a lot of people use to mount ISO images onto their machines. The download versions that have been available in the past have not worked on Windows Vista.
I just noticed last night that the Daemon Tools website has been updated with V4.0.6 saying they have "full vista support". More here http://www.daemon-tools.cc/dtcc/announcements.php
Off to try the install on my 5728 laptop...
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Hi how did it go? On my 5728 build it did not worked? Vista cannot start the device driver. Grts, Arlindo
So Daemon didn't work for me on 5728 with the same error that you see, but it is working on later builds, post 5728
Good news is: you won't have to wait too much longer for this build to be available.