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Bin and cue files are used to burn a cd. Search google or download.com for a program that burns bin and cue files. I think burnatonce can do it? I don't remember, I haven't dealt with one in a long time. When you find a program, select the cue file and hit burn and it will do the rest.
That's a virtual drive... which would probably be an easier way of doing it instead of burning a cd. Download daemon and install it. An icon will show up in the clock area. Right click it and select something like "new drive" and select the cue file. It pretty much acts as a cd drive. It can also be used for image files.