More progress has been made. I repartitioned the CF drive, this time using hdsetup. I followed the the suggested amigados commands to load the ENV volume according to this post:
http://eab.abime.net/showthread.php?t=41210
and then I was able to begin the install -- only to discover I am missing the 2nd disk of the install set (or perhaps I should say the first after the installer disk) the workbench disk!!
I will look into ordering a new set of disks and the possibility of installing workbench 3.0 to the CF via an emulator an PC.
ahhhh