Hey,
Well .mds files are used by several different programs. It generally is found with an .ISO CD image file and is the equivalent of what a .CUE file is to a .BIN image.
And yes normal an Alcohol120% file. Known as an AlcoholImageFile. But can also be a FantomCDFile.
Also MD5 is a standard checksum. Such like crc32. The .MD5 file generally contains file names and their MD5 hashes.
You can learn more about MD5 here:
http://www.faqs.org/rfcs/rfc1321.html
cya,
Will
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