Here's a copy of the config.sys once I got the machine booted.

IFS=C:\OS2\HPFS.IFS /CACHE:64 /CRECL:4

PROTSHELL=C:\OS2\PMSHELL.EXE

SET USER_INI=C:\OS2\OS2.INI

SET SYSTEM_INI=C:\OS2\OS2SYS.INI

SET OS2_SHELL=C:\OS2\CMD.EXE

SET AUTOSTART=PROGRAMS,TASKLIST,FOLDERS,CONNECTIONS,LAUNCHPAD

SET RUNWORKPLACE=C:\OS2\PMSHELL.EXE

SET COMSPEC=C:\OS2\CMD.EXE

LIBPATH=.;C:\OS2\DLL;C:\OS2\MDOS;C:\;C:\OS2\APPS\DLL;C:\MMOS2\DLL;

SET PATH=C:\OS2;C:\OS2\SYSTEM;C:\OS2\INSTALL;C:\;C:\OS2\MDOS;C:\OS2\APPS;C:\MMOS2;

SET DPATH=C:\OS2;C:\OS2\SYSTEM;C:\OS2\INSTALL;C:\;C:\OS2\BITMAP;C:\OS2\MDOS;C:\OS2\APPS;C:\MMOS2;C:\MMOS2\INSTALL;

BASEDEV=DETNE2.SYS

SET PROMPT=$i\[$p]

SET HELP=C:\OS2\HELP;C:\OS2\HELP\TUTORIAL;C:\MMOS2\HELP;

SET GLOSSARY=C:\OS2\HELP\GLOSS;

SET IPF_KEYS=SBCS

PRIORITY_DISK_IO=YES

FILES=20

BASEDEV=IBMKBD.SYS

DEVICE=C:\OS2\BOOT\TESTCFG.SYS

DEVICE=C:\OS2\BOOT\DOS.SYS

DEVICE=C:\OS2\BOOT\PMDD.SYS

BUFFERS=90

IOPL=YES

DISKCACHE=D,LW,AC:C

MAXWAIT=3

MEMMAN=SWAP,PROTECT

SWAPPATH=C:\OS2\SYSTEM 2048 2048

BREAK=OFF

THREADS=256

PRINTMONBUFSIZE=134,134,134

COUNTRY=001,C:\OS2\SYSTEM\COUNTRY.SYS

SET KEYS=ON

SET BOOKSHELF=C:\OS2\BOOK;C:\MMOS2;

SET SOMIR=C:\OS2\ETC\SOM.IR;C:\OS2\ETC\WPSH.IR;C:\OS2\ETC\WPDSERV.IR

SET SOMDDIR=C:\OS2\ETC\DSOM

REM SET DELDIR=C:\DELETE,512;D:\DELETE,512;

BASEDEV=PRINT01.SYS

BASEDEV=IBM1FLPY.ADD

BASEDEV=IBM2FLPY.ADD

BASEDEV=IBM1S506.ADD

BASEDEV=XDFLOPPY.FLT

BASEDEV=OS2DASD.DMD

SET EPMPATH=C:\OS2\APPS;

PROTECTONLY=NO

SHELL=C:\OS2\MDOS\COMMAND.COM C:\OS2\MDOS

FCBS=16,8

RMSIZE=640

DEVICE=C:\OS2\MDOS\VEMM.SYS

DOS=LOW,NOUMB

DEVICE=C:\OS2\MDOS\VXMS.SYS /UMB

DEVICE=C:\OS2\MDOS\VDPMI.SYS

DEVICE=C:\OS2\MDOS\VDPX.SYS

DEVICE=C:\OS2\BOOT\APM.SYS

DEVICE=C:\OS2\MDOS\VAPM.SYS

DEVICE=C:\OS2\BOOT\OS2CDROM.DMD /Q

IFS=C:\OS2\BOOT\CDFS.IFS /Q

DEVICE=C:\OS2\MDOS\VCDROM.SYS

DEVICE=C:\OS2\MDOS\VMOUSE.SYS

DEVICE=C:\OS2\BOOT\POINTDD.SYS

DEVICE=C:\OS2\BOOT\MOUSE.SYS

DEVICE=C:\OS2\BOOT\COM.SYS

DEVICE=C:\OS2\MDOS\VCOM.SYS

CODEPAGE=437,850

DEVINFO=KBD,US,C:\OS2\KEYBOARD.DCP

DEVINFO=SCR,VGA,C:\OS2\BOOT\VIOTBL.DCP

SET VIDEO_DEVICES=VIO_VGA

SET VIO_VGA=DEVICE(BVHVGA)

DEVICE=C:\OS2\MDOS\VVGA.SYS

SET MMBASE=C:\MMOS2;

SET DSPPATH=C:\MMOS2\DSP;

SET NCDEBUG=4000

DEVICE=C:\MMOS2\SSMDD.SYS

DEVICE=C:\MMOS2\R0STUB.SYS

I don't see any BASEDEV = IBMIDECD.FLT line so I'm going to try adding that as well as moving the line "

IFS=C:\OS2\BOOT\CDFS.IFS /Q" above "DEVICE = OS2CDROM.DMD"