I used parnet to use my CD32 as CD-ROM drive for the A1200. It was really slow and prone to dropping out or crashing.
I'd recommend checking out Kipper2k's RAM board with CF slot since the price is quite reasonable and you won't need to run a 2nd system just for storage. Check with him if it will be compatible with your current accelerator first.
http://kipper2k.com/a500fastmem.html
