The good news! I got the CD-ROM working with the tweaks outlined on this page: http://home.comcast.net/~gionpeters/hhhh/pb1400.htm

On my unit I had to turn the adjustment screw clockwise a quarter turn, as opposed to the guy in the article, who had to go three quarters counter clockwise.

The bad news: no OS 8.6 for me - only 16MB RAM.