OS3.1 install is not the same as OS3.1 installer. What you need to do is take the original 3.1 Install disk and copy the installer to C: or download (preferred) the latest version of installer from the Aminet and install it onto the A2000 hard drive.
The program "c:install" installs a boot block on a floppy or hard drive (double check the hard drive thing though, installing a bootblock on the hard dive may require lower level operations). I'm not sure why it gurus out when you give it the name of a file, but you might want to look further into that.
Hope that helps.
:pint: