I ended up with AmiCDFS 2.4, with the atapi.device driver from IDEFIX97. Edited the CD0 file in the dosdrivers folder (from memory?) to use the different driver, and set the device number to 0.
CD rom drive and compact flash now work! CF is slave, CD is master.
But the issue is, it doesn't display names properly? whats going on here? these CDs work in the A500.... is it a limitation of the atapi driver that I should have known about? 
Are you using the standard CD0 file that is included with Workbench 3.1? If so, you should use the mount file that's included with AmiCDFS instead. Try this to see how it goes.