Hum,
when it asks for disk two....you press F12, and eject disk one.. and load up disk two in DF0:....
If that doesn`t work,
Copy the contents of the disks into a folder on your workbench (HD) and add some assigns to your userstartup.
ASSIGN Alenbreed: "Workbench3.1:System/folder/alien"
(i cant remember what it really should be)