My CD drive is boots on /dev/sr0 (SCSI generic iirc), which also if I know correctly requires sg.o to boot. This makes the LiveCD fail. When I use 'shell' with busybox then I mknod the device, I exit and it mounts the CD then fails to unmount the initrd /sys. I think this could all be fixed if sg was compiled into the kernel, although I'm not sure. This _does_ work with knoppix.
And SCSI CD_ROM support, after googling I guess I need SCSI CD_ROM support built in to use this drive. This drive also works on kubuntu's live CD
Did you boot the CD with "doscsi"?
*Egg on face* I think I've been through this before. I totally forgot, it's been a couple of years. Thanks!