Concerning the /dev/cdrom issue, it is usually that /dev/cdrom is a link to another device name and is just there to make our lives easier. It could just be that what it is linked to is not the correct device name.
Have you thought about trying to use Gentoo or something similar just to get you started so that you can then do the LSF Project? Just a thought...
Do you have a ZIP drive? I know that Slackware makes a distro that fits on a ZIP 100 disk which would free up your CDROM...
You will have to install or run enough of an OS to be able to use the network anyway, so maybe installing LSF on top of something else would be the better way to go...
My $0.02
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