Progress has been made, but we're not there yet.
In case my answer has not gone through:
>Can't you include the burner when you make the VM? With Virtual Box at least you can (if I remember correctly).
No, I cannot. Windows does not expose the actual device to the VM, but instead the image that's mounted to the drive letter. On Linux you can get just as far by exposing the cdrom block device to the VM, however, that block device only contains the image that's on the disc. So, regardless of what system your hypervisor is, you get the same results. Your VM will only gain access to the bland iso9660/udf image. You have no way of issuing SCSI commands to read subchannel data, read in raw/sub96p or whatever. This is not going to be the authentic experience, you're just as good mounting iso files.
Continuing. I have set up an iSCSI target on Linux and then an iSCSI initiator on Windows, which happens to be the machine I have registered for my Alcohol 120% license. I asked somewhere else about getting access to customer forum, but the person in charge of receiving PMs about it seems to be away.
I have managed to successfully read subchannel data and skip sectors, however I am not able to conduct a DPM read. For what it's worth, using Alcohol 120% on CDROMs obtained through iSCSI is blazing fast!