Working with CD image files, which can be very large, can take a very long time on older and underpowered machines. The process involves repeated disk accesses - very many of them. This can precipitate disk failures, due to more than one cause.
One would be if the user thinks the process takes so long the user thinks the computer has "hung" and interrupts the process while the system is accessing the disk, especially by doing "hard" or power off shutdowns. A lot of computer damage results from the failure of users to watch the disk access lights, and wait untill they have stopped lighting or flashing before shutting down or initiating new, significant resource load tasks. (The OS is probably better at "multi tasking" than the hardware it runs on is.)
A second would be if the disk was "marginal", that is not in good condition or properly maintained before the disk resource intensive process - in your case a Nero Image processing task - was begun. Such a task should always be preceded by thorough Scandisk or Check Disk testing and and validation of the health of the disk. I recommend staring with a "normal" scan to assess the presence of file system errors, then a scan which repairs those errors found, assuming the number is not so great that it indicates an emergency need to do a complete backup of data on the disk. The next scan should check for and attempt recovery of bad sectors.
Once the health of the disk has been validated, the disk should be defragmented. This process is especially crucial if the files on the disk are fragmented and not contigous, before attempting work with a very large file like a Nero Image file. The many disk accesses required, especially on an underpowered machine, for a large file will increase in geometric scale if the disk is significantly fragemented.
There are many ways to attempt recovery of data on a disk which is recognized by the bios, and accessed at a physical level by the machine. If the machine cannot attempt access of the disk at all, then you have a problem that is beyond my ready expertise.
I would suggest that you pay for and attempt to use the Gibson Research Corporation "SpinRite" recovery tool, available at
http://www.grc.com/sr/spinrite.htm It may or may not work for you - but it's a good first step, as best I can assess from the limited information you have provided.
Best wishes, and good luck in your recovery efforts. Keep us posted on your progress, and do not hesitate to provide more information or ask more specific questions as needed.