AmigaOS2.x did not have ATAPI filesystem drivers so in order to see your CD you'll have to install a 3rd party one.
CacheCDFS
ASIMCDFS
IDEFix97
etc.
As for termination... all external SCSI CD-ROM's I've had (from back then) had two centronic style connectors on the back, one had the SCSI cable going to the Amiga and the other had a block terminator or was connected to another device which in turn had a block terminator.
I've never had to use terminators when connecting internal CD-ROM's to internal cables. Just take care not to set the device ID to that of another device OR the host controller.
