Well, I just checked the termination and it's on. The device is set at 3. I just booted the Amiga after reading the instructions for the cd-rom. It says there's an order for turning the cd-rom and Amiga on and off. Turn the cd-rom on first then the Amiga, and turn off the Amiga and the cd-rom after that. Well presto!! it works - no need for a cd in it. I don't know what was going on before. as an aside - I rarely turn the girl on as I'm in perpetual terror of hard drive failure due to its' age. But I don't feel inclined to do what I've done with my A1200. Something like sacrilege or the sort. Thanks for all the case examples and moral support.
Dont worry, hardware is meant to be used. when the hd fails you can also get a scsi2sd or a scsi card reader. If you dont want to lose workbench back it up to your 1200 just in case.