You wouldnt be able to perform (AFAIK) a full linux install inside colinux. For that you would want to create real linux FS and install it onto that natively, then use the Conversion Process to access it inside colinux. http://wiki.colinux.org/cgi-bin/ConvertingDistributions
If you would like to refer to this comment somewhere else in this project, copy and paste the following link:
How to install full linux (or at least many packages at once) from CD (for example - Debian GNU/Linux 3.0 "Woody") to coLinux?
In theory, once you have the CD mounted -you should be able to install groups of packages like you would normally. http://wiki.colinux.org/cgi-bin/CdDvdAccess
Once you have done that (as the above guide helpfully points out), then go on to this guide:
http://www.debian.org/doc/manuals/apt-howto/ch-basico.en.html#s-cdrom
You wouldnt be able to perform (AFAIK) a full linux install inside colinux. For that you would want to create real linux FS and install it onto that natively, then use the Conversion Process to access it inside colinux.
http://wiki.colinux.org/cgi-bin/ConvertingDistributions
The Wiki at http://wiki.colinux.org has an walk through on how to install Debian 3.1 "Sarge" in coLinux.