Solved!
In case you are wondering what happened, this is what I did to make it work.
- Installed Idefix97, choose to say NO when it ask me to start idefix (otherwise it locks the computer) and rebooted at the end of the install.
- Removed the lines written in the startup sequence (so c:Idefix won't start)
- ran IDEfixPrefs :
Unit 0: atapi speed: default, Unit type: auto, Unit mount: Hd
Unit 1: atapi speed: default, Unit type: IDE Unit, Unit mount: cd
Unit 2: atapi speed: default, Unit type: disabled, Unit mount: disable mount
Unit 3: atapi speed: default, Unit type: disabled, Unit mount: disable mount
and saved
- in Devs/DOSDrivers, changed the CD0: tool types (idefix created one, I just replaced it with the one in Storage on ClassicWB) as following:
ACTIVATE=1
DEVICE=scsi.device
UNIT=1
Now after reboot, I see the cd mounting without problems on the desktop, works like a charm

Hope that this may help some others that has issues with the cd....I am not sure exactly what made it work, but I have added all the steps that I did, and it works now.
If someone has more info about what the heck is going on, I would appreciate, since I prefer to understand what happened
