Well, I tried lots of ways of getting the CD working in 9x. Strangely, changing the (mistakenly detected as HDD PCI IDE) driver to "Standard PCI Dual IDE" in device manager made the CD pop up and work, though after resetting I get "ye olde BSOD"! The BSOD also prevented me from loading the CD drivers through dos and then starting up windows.
What I'd originally intended to do anyway actually worked quite nicely though.... I was always intending to make a large (15gb) virtual drive, and store iso files inside the image. The reason I wanted to do it that way is some games use multiple CD's, and by using MagicDisc you can mount loads (like all 4/5 CD iso's for a game - no swapping). So far I'm a bit limited by the software and hardware I have at hand (my trusty Asus EEEPC 1001p is a touch slow compared with the I7 Quadcore beast I have at my disposal normally). It takes me quite a while getting an image installed and to extract CAB files etc...
For getting files onto the image (without CDROM) I've found the easiest way is to fromat an SD as fat32, pop it in the netbooks SD slot (as opposed to it's air vents...) and mount the physical drive as HDD2 using Qemu manager. For some reason this mounts perfectly (usually) in a 9x VM and it's really easy just to download files from the net or copy them from my 500gb passport drive I stuffed with "useful" data before running for the train. A quick reboot of the QEMU VM is needed to pick up new data, but you can easily copy games and stuff over for testing. So far I havent tested games on the pandora, I'm more interested in getting the OS as stable, minimal, compatible and speedy as possible. I was pleased to see there's some major enhancements and improvements in compatability of newer" XP only" software running on win98 using the latest kernelEx extensions. Once I get the 98 OS (I want it as it's easiest and most compatible for running DOS/95/98 software in a single system) running nice I may look into trying networking. I should get a bit more time to mess with this next week, this week has been chaotic (family problems). I hate setting up networks in old windows though - it hurts my brain.
I really am looking forward to getting more time to mess with this, what I tried so far on the pandora (which was to play solitaire on a sturrering 98 SE) was very impressive. By using 98 FE as the base OS I have high hopes for something easy and very compatible. QEMU is an impressive piece of work, and all you guys are in for a real treat comes the end of march. All credit to you guys doing the porting work.
Just a minor note on windows ME, it actually ran quite nice though the gfx card gave me grief. It gets wrongly detected and installing the right drivers didn't work either. The universal VBE driver also failed to produce more than 16 rancid colours. I might try again using the alternative bochs VGA card. Having said that it had less problems with the intermittent stuttering I've experienced on 98SE. I also reccomend for any OS shutting off virtual memory (and where possible use "qemm 97" memory manager - you can assign it to report some real RAM as virtual memory which stops some programs moaning and works well with 128mb - in the era of win95 some HDD's were 128mb!). Scitech display doctor 7 has also given me grief so far, which is a shame as it offered the possibility of opengl and better 3D. Maybe when I get more time, and my faster PC on the job I can install OS's till my hearts content.
I'll keep playing with this - I have a 5 hour train journey in the next few days so I might use it productively! On my last journey I watched some Buster Keaton movie on the netbook and there was a young kid about 3 or 4 on the train who was absolutely transfixed by it, I didn't have the heart to turn it off and start installing a DOS based OS.
EDIT - Haven't time to try this on the pandora yet, but on the netbook I just tested the universal VBE9X display driver (still using cyrix 5446) on Win98 FE and I can set the display to 800x480. I have no idea how this will display on the pandora, will it be native resolution. If I get time I'll check it out tomorrow. Excuse me if I'm repeating anything someone else has already tried, I haven't had time to read through everything.