indeed, what you will be doing is creating an image (virtual copy in other words) of the disc and epsxe will be able to read and play it. you can learn how to create an image of your disc by following one of the tutorials contained within the thread i have linked to below.
http://forums.ngemu.com/misc-psx-discussion/34515-how-make-perfect-backup-psx-games.html
http://forums.ngemu.com/misc-psx-discussion/34515-how-make-perfect-backup-psx-games.html
