Just to post the efforts of my past 2 days trying to install WindowsMe, in case some other SOB like me runs across the same problem. None of the tutorials or howtos or other posts on this board helped because they all assumed that I could get farther along than I was. It seemed like, once booting from either my WinMe install CD, or an .iso I had made from that CD, I couldn't get past where DOS (or whatever it is at that pre-install point) was supposed to recognize that CD drive. I thought maybe I had the wrong drivers. I tried a WinMe boot .iso, a Win98 boot .iso, and a DOS6.22 boot .iso to no avail.
Turns out, the install CD was recognized once I got rid of the secondary IDE bus in my VM setup, and simply put the CD drive with the install CD as the primary slave. Whew! What a waste of 2 days.
As you were.