Damn it! I was so close to getting it sorted! I mounted the PC0: device and tried to read the disk, the only problem was that I was still typing DF0: so this was causing the same problem.
Yep. I remember doing the same thing when learning how to use CrossDOS. :-) Took me a while to figure out that the same drive had different abilities by calling it different names. ;-)
If I manage to get the Amiga to read the disk with Twin Express on it, how do I install the program to the ramdisk?
Well, that depends. You probably don't need to "install" it, per se. If it's just an executable, it should run from anywhere.
If it's a .lha file, you'll have to uncompress it, and copy the files to their proper locations on your (copy of -- not the original! -- always use backups!) Workbench disk.
I was told it would have to be coverted to a ADZ file, because the ADF file is to big to fit on a 720KB disk, is this true?
AFAIK, an ADZ is just a zipped ADF file. And you are correct that a standard ADF of an 880KB disk won't fit on a PC 720KB disk.