No, the software can't create ISO files. I have simulated a READ from File operation, and the file type supported is DVD and CUE (when selected). According to the developer's information, you can use CloneCD with an ISO file to write it to a CD, but you can't create one. I have tried every possible solution to do this with 0 % success. You might need another application to create a ISO file.
Use the database of Software Informer to look for an application that can create ISO images from physical discs.