Get the latest versions of both programs,
Daemon Tools and
CloneCD. First start Clonecd, select "Read to image file". In the next screen select the drive that contains your cd (I'd suggest to use the cdwriter for this) and press "Next". In the next screen you have to select a reading profile. It's best to download the newest version of
ClonyXXL and scan the cd with this. This program will make a "ClonyXXL" profile that you can select in CloneCD at the current step. You can also try the "Game cd" and "Data cd" profiles, but ClonyXXL is better at this.
Install it, ignore the german comments. When it starts the first time it will ask you to tell it which drive letter is assigned to which drive (it will give you the name of the drives). Assign them like they should be. You now have a german language ClonyXXL, just press on "optionen" and then click on the radiobutton next to the English flag to change the language to english. Now scan the cd with this new ClonyXXL and it will make a profile for CloneCD. Now press "Next" and on the next screen you have to press "Browse" and type in a filename for the image you're going to create, I suggest "Sims Deluxe". Press OK to start making the image.
When the image is made, start Daemon Tools, click on the system tray icon and select "device 0". Then browse to the image file (probably "Sims Deluxe.ccd") and load that. Now you have an extra, "virtual" cdrom drive letter with the complete cd accessible from your hard disk. Now install from this new drive to force the game to use this new drive, you should now be able to play without the cd. If it doesn't work, you can enable Safedisc emulation by rightclicking on the tray icon and selecting emulation/safedisc, though this shouldn't be necessary. One last thing : this will ONLY work with an image made from the original or a near 100% copy