Hello clebel and Welcome to NeoSmart Technologies.
The first problem is you extracted teh ISO File. You don't extract it. You burn the ISO file to a CD.
Burning ISO Images to a CD or DVD - NeoSmart Technologies Wiki
There is instructions on how to do that if you dont know how. After you do it this way the CD will function correctly. Just boot with the CD in trh tray and it will function as a Recovery Disc.