Is the warpdrive.device loaded after boot? Is there some way you can boot from another volume and run a tool to show you that?
warpdrive.device is in the flash of the card, AFAIK. I never installed anything from any floppy to get it to work. But... I do have red termination thingies on the board as shown on the photo's on amiga.resource.cx.
It might be strange issue with the U160 drive (are you using a convertor for that?) combined with the CDROM?
What happens if you take the harddrive off and only use the CDROM?
Also, I installed the disk using the regular HDToolBox, going into the properties and setting DEVICE=warpdrive.device as tooltype.