@Snowwie
A little late now I guess, but you probably didn't have to reinstall - holding down both mouse buttons when you power up gets you a special startup menu. Click boot with no startup sequence will get you a DOS prompt, and from there you can type "Ed S:Startup-sequence" to edit it and remove the offending lines.
As for it not working, it does look like the DOS Driver is installed correctly as you're getting a "No disk in drive" error, but it looks like your CF card and/or the adaptor just aren't 100% compatible with compactflash.device. I've found that with a CF card I had lying around. I haven't tried another yet...
