Does the 'UNIT=2' in the CD2 Mountlist correspond with the position of the drive on the IDE interface?
This script places it as Master on Channel 2.
[EDIT] Your error mesage indicates the software is actually looking for CD0 as Master on Channel 1. This is almost certainly wrong, since that's where the Boot partition goes. Try dragging the CD0 icon from the AmigaXL drawer into Devs/DOSdrivers and edit this icon as discussed earlier.
Cheers,
JaX