I wanted to add an update to this thread in case anyone using similar hardware in the future is reading this:
Although using Thomas' wondering MMUlib install did indeed get the (Amiga 3000 tower - Picasso IV - OS 3.1.4) combo up and running, I kept noticing that many pieces of software I was installing would break the system and I would have to restore the system back. This was happening pretty frequently and I was pretty sure the problem wasn't the software, the OS, or the picasso IV.
I am lucky in that I own another powerful accelerator, so I decided to swap that PPS Mercury out and install a Cyberstorm MK ii 060 board and do a fresh install of 3.1.4 and start over.
Immediately every and all issues disappeared. My x-surf/rapid road combo was also not working with the Mercury setup but with the cyberstorm 060 it works perfectly. The picasso IV is working perfectly and so is every other piece of software I install on top.
One more oddity was with the Mercury installed when I loaded the workbench prefs in 3.1.4 and added a check mark to the "set MWB colors" option it would then cause my system to crash (flashing green power light) whenever I clicked on the CD0: device in Dopus... very strange, I know. But once I installed the cyberstorm 060 on a fresh install that option in workbench prefs no longer crashed anything.
Just wanted to add this update. So, with the help of Thomas' MMULib it seems possible to get things working, but there is alot of incompatibilities still present. If anyone has a 3000 machine and wants to use PPS Mercury accelerator you might have to settle for a much earlier OS release to get intended stability. Like maybe 2.0?