Sound information above from OddbOd.
I compiled this message before I read the latest posts, but I'll post it anyway, because too much help is better than none.
Download CDGEN 3.0 from this site:
Don't be tempted to download the earlier version below it; any ISO format images it creates will be corrupt.
CDGEN 3.0 will let you drag and drop the files from your damaged CD into a new volume and will then create a Playstation format ISO image for you.
You will still need the licensing tool, HitLice, suggested by musashi5150 above, to make the ISO image bootable.
The resulting image can be burned to a new disc with any tool which handles ISO images (CDRWin, for example).