Been away one day and a whole lot of communicating is going on.....
What are the chances of that.
For newbies I would advice not to touch MyBIOS.
The FAT-loader will suite all your needs for now, this is a plug-and-play for all your downloaded games.
Now, when you want to read and WRITE to your CF-card, you need the aid of MyBIOS.
Or when you have a game that uses multiple disks-images.
The BIOS is nothing more then an extension to the original OS to do IO over the cartridge-port to CF.
Error 160 is a typical MyDOS error.
Reboot your machine and load the rescue MyDOS.
Type 1 and make sure partittion D1: is accesable, you get a directory or garbage on the screen.
Use O to configure any non standard size, but I would strongly advise to keep D1: standard 720sectors SD.
Now (format if needed and) write dosfiles to it.
Done.
Later.