I am new to C++ programming. Till now I have done some toy programs and classroom exercises.
I want to develop a Virtual Drive software like PowerISO/Magic ISO.
I searched Daniweb but couldn't get a thread where such problem was discussed.

So from where should I start to develop such a software and how much time do you 'expert' people think will it take?

If it is for MS-Windows then start with the Windows Driver Development Kit (DDK)

I have no idea how much time it might take one person to do that job.

Thanks for the link. I was looking only for Windows system.
Is there any way I can know which driver(s) PowerISO install on windows system?

They wrote their own and that's what the DDK lets you do.