Do note that the files, on the CD, named aux* (located in devs & storage) will get Windows to hang while trying to copy them while being in Windows (if trying to copy them to your harddrive)... don't ask me why, or if this applies to all different versions of Windows... my Windows XP and Windows XP Pro SP2 does this to me, though. It worked nicely from within WinUAE, though...
Besides, you do NOT need any CD-Filesystem to mount under WinUAE... you can just put your CD in your CD-Drive and configure it as normal under WinUAE's configuration screen... just add it as a device and make sure that you name it correctly. It will pop up perfectly on the Workbench when you boot your WinUAE into 3.1...