Rnmcd, I would suggest buying a real CD-ROM drive, and having that in your computer along with the CD-RW. I've heard that the laser heads in CD-RWs are heavier than the lasers in normal CD-ROMs, so to make your CD-RW last as long as possible, I'd only use to to burn CD-Rs and CD-RWs. A cheap CD-ROM can be picked up for under $40, and it'd be a good investment to prolong the life of your CD-RW.
Anyway, for cable setup, I would suggest the following:
IDE1 Master: 15 GB hard drive
IDE1 Slave: CD-RW with DMA enabled
IDE2 Master: 30 GB hard drive
IDE2 Slave: CD-ROM that's ATA33 compatible
I'm pretty sure most modern CD-ROMs are ATA33 compatible. I picked up a cheap ATA33 compatible Digital Research (which still hasn't returned my $10 rebate BTW :|) 40x for $30 including the rebate. I use the 40x CD-ROM for most everything, and I only use my HP 8250i CD-RW for burning CDs.