SamuriHL is an advocate for blu-ray ISO.
@bodie, as an alternative Google and download
PowerDVD 7.3.3119a and your done. It will read Blu-ray movie from harddrive all with menu. However if you want to watch the main main movie only (without menu) you can select individual .m2ts files inside \BDMV\STREAM folder. The largest file is usually the main movie. There are some movies that are seamless branching though so you need to be able to read the menu.
Newer PowerDVD version 7 and 8 will not read Blu-ray movie from harddrive anymore, however it will read the single files. PowerDVD 8 supports PiP, BD-Live and DTS-HD MA, but if you don't need those, just get v7.3.3319a. You can install v7 and v8 together btw.