OK, so .. I re-read the guide by DrCoolZic and it seems I did not get the ACSI ID#s setup correct, and although it worked, it was conflicting I guess?
So I now have setup the SD slot on the cosmos as ID#0 - so the PP driver boots first. In the cosmos ACSI setup, I have the Pi drives (sd slot and USB) setup as #1 or the last column which is called ce-dd for booting CE_DD driver. Which confused me originally, because I was not interested in booting from that drive, but I still wanted to use them.
SO, I am on to the next challange now.. Thanks all who have helped. CE_STiNG now seems to work. I can telnet (usually works) and I can IRC. CAB works, but of course is not usable on many webpages.
Wish I could log into this forum on CAB.. but would seem I cannot.