It's funny, because I used to use beyond media, with the dvdlibrary plugin, and I used VCD. It just worked. Then one day, I couldn't make it work. went on to the beyond media forums, and started asking questions. The creator of the dvdlibrary plugin got on, and basically called me a liar, saying that it wasn't able to make it work with VCD, and that I had to use daemon tools. All I know is that I hadn't ever installed daemon tools before then, but it just worked.
Nevertheless, this is the first release that is "officially" daemon compatible, according to the release notes. And I tried it and it is compatible with MP. Also, if anyone is testing windows 7, VCD is now compatible with that, too.