Windows Embedded Standard 7 SP1 consists of 3 DVD5 images (ISO's). Download the .exe and .rar files for each DVD image into its own folder and run the .exe file in that folder to reconstitute the .ISO file. Once the .ISO file is created you can then burn the ISO onto a blank DVD. The toolkit DVD is used to install the Image Configuration Editor (ICE) and associated distribution share(s) onto a PC. The 32-bit and 64-bit Standard 7 SP1 DVDs are bootable WinPE DVDs that contain the Image Builder Wizard (IBW) and the corresponding 32-bit or 64-bit distribution share. Typically these DVDs are used to boot into Windows PE on the target device and apply the runtime image created with ICE or to prototype image creation using the wizard and various templates available in IBW. Please read the Windows Embedded Standard 7 SP1 documentation for more information on using ICE and IBW to create and deploy runtime images to your devices.
Source: Microsoft