I went through a tutorial using ppf-o-matic but get an error message saying the software cant open the specified image file. Which has DEAMON tools logo on it and is called a CCD
What this means is that .CCD files are associated with Daemon Tools; that's the only reason it's showing that logo. The reason you're getting that error is because the .CCD file isn't actually the disc image, but just a descriptor file, and the actual image file is most likely a .IMG file that came with it. Some programs like ePSXe can look at the CCD and know to continue loading the IMG file, but programs that directly edit your disc image will sometimes need to load the main file directly. The easiest way to tell which is which is that the less important CCD file will be only a few kilobytes, while the main image file will be several hundred megabytes.
Now, all that said you should be able to just stick your PPF patch file in the "patches" folder in your ePSXe folder and have it work automatically, yes. You may need to rename it to the same name as your disc image, so say your image is called "FinalFantasy8.ccd", you would change your PPF to "FinalFantasy8.ppf".
Do I have to create an ISO image ?
As long as your emulator can run your game normally by selecting the .cue/.img file through "Run ISO", you shouldn't need to convert it.
If you have any other questions or concerns feel free to let us know here
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