Your HD's transfer speed will be limited to that of the CD-ROM on the same channel, i.e. slow.
If you want to maximise the HD speed, a better arrangement (now you've fixed the Zip issue) would be to put the CD-ROM on channel 2 with the Zip.
The CD would then be limited by the speed of the Zip i.e. very slow, but that may not be a problem. (?)
Cheers, JaX