I guess it alters values for a specific game in your registry (or some config file) which normally points to a CD drive to point to your hard drive. Be VERY careful where you download the patch from...

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It usually replaces the executable with a version that does not check for the CD. This is usually done to circumvent the software copy protection and is illegal.

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As mentioned, upon start up the launch file is supposed to search for a CD, which in this case would be removed and thus the game would just start without it.

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When games are launched they usually look to make sure the CD is in the drive. Usually files aren't being accessed to play the game, but instead to make sure you have a copy of it. No-CD patches take care of this problem. ******* Gamers will edit the exe file of the game, and take out the command lines to verify the CD is in the CD-drive. When you download a no-cd patch, you'll probably download a zip file with an exe file and text instructions. ---- No-CD patches can be found on general gaming sites with downloads and fan sites for specific games. The easiest way to find a no-CD patch is to check a gaming site with a collection on no-CD patches. If a patch can't be found there, you next bet is to go to a search engine and do a search for a no-cd patch and the title of the game. Or you could use virtual CD software.

Source: http://compsimgames.about.com/cs/gamingtips/a/virtualcd.htm

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