Random thoughts in random order:
I think the CF drive is an ISA device, not a floppy drive. Are you sure your floppy drive is plugged into the floppy cable connection on the top of the card cage?
If the drive light comes on at power-up and stays on, the cable is plugged in upside down.
Does the PATH.DAT file point to the right drive?
Try plugging your drive and cable directly into the I/O card/motherboard. Shell out to DOS, and do DIR's on the various drive letters to see if any of them work.
Depending on the card cage configuration, the floppy drive will be the A:, B:,or C:, and in rare circumstances, the D: drive.
Good luck, let us know what you find.