Another vote for Toast 7. An amazing, versatile app, and well worth its price tag - and I don't say that about many pieces of software (at least ones which are in the $70-$100 range).
Yeah, the built in stuff would work just fine actually. In his post the OP mentioned Alcohol 120% which of course has other, Toast-comaprable features...
Yep. In Disk Utility, File --> Open Disk Image. Then click the image in the left column and then the Burn Icon (if DVD/CD burning is your intent) and voila!