OH, forgot to mention when I run the CD under Amiga Forever emulator, it works.
So, it really does sound like the CDFS is wonked.
Will try the OS 3.1 CDFS and see what happens.
Thought you would have tried the filesystem first, as there really is nothing else it could be other than a virus that hides .info files.
Alternatively, you could run the Installer command with the installation script file as its argument (as a last resort).