1. pop the CD in your drive. if you want to make a subchannel file, make sure your drive can read subchannels.
2. see on the left where it has the big button that says "Image Making Wizard"? well, we're making an Image, so click.
3. this is why i love Alcohol 120%. see down there where it says "Datatype"? select "playstation". this automatically checks the right settings.
4. this is important. pick somewhere to save it, and make sure to name it. under Image Format, pick CloneCD Image File (.ccd)
5. just click Start and it makes it.
6. so when you go into ePSXe, go to File--->Run ISO and pick the file you just made. poof, there you go!