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http://www.racketboy.com/guides/ripping-bin-cue.htm

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Guide To Ripping Older CD-Based Games

I've had a number of people ask me how to rip their older games into an ISO-type format, so I've cobbled together some information on the topic. I personally use a piece of shareware software called CDRWin. It's a very powerful piece of software that is very solid and has never given me problems. It can be a little intimidating at first, but really isn't difficult. There are many other programs that you could possibly use, but for simplicity's sake, we'll stick with CDRWin and the BIN + CUE format. I'm also suggesting the BIN + CUE format for a couple reasons

It's not proprietary so most people can burn the images is a variety of different software packages (Nero, Roxio, Alcohol 120%, CDRWin, etc)
It's the most popular format among retro-gaming downloaders

This tutorial applies to games from various systems such as Sega Saturn, Sega CD, Neo-Geo CD, 3DO, and even Playstation. I'm sure there are others, but I haven't personally dealt with them. If you are interested, ripping Dreamcast games is completely different. So on with the tutorial. Just follow these steps... Ripping in BIN + CUE Format

Put the CD in the drive you want (preferably a burner -- it will most likely have variable reading speeds)
Start up CDRWIN.
Select Extract Disk/Track/Sectors, the top middle button on the toolbar.Choose Disk Image / Cuesheet as the Extract Mode on the top of the next window.

After selecting the "Extract" button, you'll have the following screen appear:

On the second field on this screen, name the file 'whatever.bin' ('whatever' being the name of your game).
You might want to set the Data and Audio Speed to 4X - 8X just to reduce the chance of data errors.
Click Start and CDRWIN will rip the BIN file and create a CUE sheet.
Finally, open the cue sheet in a flat ASCII text editor (like notepad) and remove the path from the file name. For example, I changed the first line of my Guardian Heroes CUE sheet From - FILE "C:\GAMERIPS\GUARDIAN_HEROES.BIN" BINARY To - FILE "GUARDIAN_HEROES.BIN" BINARY That way, as long as the CUE and BIN files are in the same folder (which they always should be), anyone will be able to use it on any machine without editing anything.
The BIN + CUE set is now ready for naming, compression and uploading.

That's it! Pretty easy, huh? Once you've done it a few times, it's a piece of cake.