Do you have a PC floppy? Hopefully you have a high-density Amiga drive, if not, you'll need a double density formatted PC floppy.
If so, copy it onto the floppy instead of CD. Setting up the CD on a 3.1 system is tough enough with it running.
Copy it onto the PC floppy.
Hold down both mouse buttons at boot to get the early startup screen.
Boot with no startup-sequence.
From the cli, mount PC0:, it should be in storage/dosdrivers
Put the PC floppy in and copy it from PC0: to the libs directory.
Then reboot.