I'm trying to find a freeware software application that will take an
audio CD and create a normal ISO image (.iso) on to a hard drive. 
This is so that I can listen to my music CD's from my hard drive
instead of having to switch out CDs in my CD-ROM drive.  I do not want
any shareware or any software that I will have to pay to use.  There
is plenty of shareware with this functionality, but I searched for
hours and couldn't find any FREEware.  Can you find it?

You're much better off ripping your CD's and converting them into
MP3's. They will take up much less room on your hard drive and there's
plenty of freeware for doing that. -shiva777

I'd answer two requirements here.
1. Ability to create ISO images from CD
2. Ability to dump Music CDs on the drive and listen to them without
the CD.
I am not sure about the platform you are talknig about. My first
solutions refer to Linux.
1. In order to create ISO images from any CD, on linux there is a
utility called mkisofs that can convert the CD into an ISO image,
which can be mounted on any partition as am ISO9660 file system and
u'd get the files that were in the ISO image.
2. There is a utility called grip, this would rip your CDs, i.e.
convert the Music CDs into MP3s which u can listen to offline on you
comp.

Comsidering the Windows platform.
1. In order to convert CDs to ISO images, there are a lot of paid
softwares. But i guess u can use the cygwin environment to set up
mkisofs. lemme know if u need help on this.
2. there are a lot of ripping softwares on windows too. The very basic
windows media player does it. U'd need windows media player that comes
by default with windows OS.Open windows media player by Start >
Programs > Accessories > Entertainment > Windows Media Player. U may
need to upgrade to the latest version of Media player that is freely
available from the internet (google it :) ) . Insert the CD into the
tray, click on the button Copy from CD button on the left hand bar and
the music CD would be converted to wma files. To figure out where the
files are saved. Goto menu Tools > options, Copy Music Tab. It
specifies where its storing the ripped files.

I guess you'd b on a windows box and making use of the second method.
Its very simple.

If you have a Mac, the software to create disk images (.dmg on the
Mac) is included with Mac OS 9 and Mac OS X.

The Apple-created app "Disk Copy" has a function that lets you copy
partitions from a CD.

To use: (instructions for OS X 10.1.x)
1. Open Disk Copy (in OS X, it can be found in
/Applications/Utilities/Disk Copy.app.
2. Under the menus, select Image: New Image from Device.
3. Select disk1; click the drop-down arrow, and the select the top
item.
4. You will be prompted to save the image. I advise that you choose
"DVD/CD master" as the image format; this will help preserve the CD's
integrity.
5. The disc will be imaged, and you can launch the image at your
pleasure to play the music located thereon.