First let me say that the Neokey won't do much for you - but it will help you to boot games of standard CD size.
The BIN file is what CDRWin produces when it rolls up the contents of a CD into an intermediate (patchable) file.
The tutorials on
www.psxcopyworld.co.uk will tell you what to do and the BIN file is the intermediate product, not the input! When you burn the CD-R from the BIN file, CDRWin reconstitutes the original files and structure.