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May be this is obvious but:
Deamon Tools = Virtual Drives Only
Alcohol = CD Burner that support Virtual Drives (Record & Emulate). Very well supported, BTW.
Deamon Tools = Support up to 4 Virtual Drives
Alcohol = Can handle up to 31 virtual CD & DVD ROM drives, all at once
May be if you have a CD burner you have to think to choose between Alcohol or CloneCD (that support Virtual Drives too)
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