Can now boot either DOS or TownsOS 2.1 from a CHD image.
Unfortunately, it breaks floppy access for some reason, some issue with the DMA controller most likely.
EDIT: Fixed floppy issue, current code committed as r9579. Do note that write support hasn't been done yet. You can read and boot without problems though.
Last edited by mahlemiut; 11/14/1012:43 PM. Reason: extra info