I think the syntax for your DOSDriver mountlist is wrong. Does AmiCDFS come with one that you can modify? Or can you grab the original CD0 from SYS:Storage/DOSDrivers? (or your Storage3.1 floppy) and modify that? Handlers might be case-sensitive, not sure.
From memory, try:
/*
Mountlist for CD-ROM drive
*/
Handler = L:BABELCDROMFS
Startup = scsi.device/1
StackSize = 4000
Priority = 10
GlobVec = -1
As I recall, the documentation for BabelCDFS expects an old, OS 1.3-2.0 style mountlist:
#
CD0:
etc.
With OS 2.1+ and DOSDrivers, the format is slightly different. I think what I posted above is correct!