The Xetec driver on l8r.net supports KS1.3, so that should work for the CD-ROM. I used KS/WB2.x so the choice of CD filesystems was greater though I can't remember which one I actually ended up using. AsimCDFS I think.
Memory useage by the driver was a little under 250k I think, I will plug it in and check it out time permitting.
Another way to overcome the cable issue is to add some buffers to the interface which isn't difficult but with short lengths I didn't deem it necessary.
I made a startup disk that loaded the driver and passed the remainder of the startup-sequence and assigns to the harddrive to speed up booting though I too did consider a modified ROM based driver to autoboot from the HDD but I never got very far with that idea due to lack of time.
I may still look into it though.
I also built the 14mhz hack and it works fine with 68000's from later (rev 6+) A500's. I ended up using a socketed square 68000 from an A600 for my project wired into a standard DIL 68000 CPU socket.
Regards,
Clockmeister.