My good friend Jimmy bravely (stupidly) offered one of his many old Apple PC's as crash test dummy and nothing blew up - so on with getting this working as a CD drive.
Originally BlueSCSI supported HDD emulation, but as of June last year CD drive emulation has also been supported
https://github.com/erichelgeson/BlueSCSI/discussions/150
CPS3 drive settings from here
https://wiki.arcadeotaku.com/w/CPS3#SCSI_CD-ROM_jumper_configuration
Bluescsi takes a lot of the drive setup data from the filename, so super easy to change, format is as follows, max 32 chars
device Identifier = I want this to be a CD drive so use CD
SCSI ID# = CPS3 wants SCSI ID = 1 so use 1
LUN ID# = I have no idea why this is here, maybe in future if they are going to add RAID support later? CD drives don't do RAID and don't have LUNS so 0 is off use 0
_Sector Size = CDROM sector size standard is 2048 bytes, Capcom (mercifully) did not mess with the sector size standard so use _2048
-descriptor = everything after the hyphen gets ignored, use for description, might be useful to know if its the SH2 standard or SH2 custom dump, for me its custom, and because this is an embedded application if I done write it down I will never remember so use -CPS3SH2CUSTOM
.iso = tells the bluescsi that its a CDROM .iso and not a HDD image so use .iso
Putting it all together the filename could be
CD10_2048-CPS3SH2CUSTOM.iso
then we also need to set SCSI termination to on, this is done in hardware on the blueSCSI board, there are TWO termination jumpers.
One looks like it grounds this line, setting TERM to ON
the other looks like it bridges +5v from pin 26 on the SCSI connector, setting TERMPOWER ON
I'm not brave enough to see what happens if only one or the other is set, so set both = ON
Then we need to set parity = ON (1), this is the SCSI default and as far as I can tell there is no way to turn it off on the blueSCSI, so that's easy.
so TL;DR
Format SD card as FAT or exFAT
download iso from here
https://www.arcade-projects.com/threads/cps-iii-bios-and-cd-releases.36/
rename to = CD10_2048-CPS3SH2CUSTOM.iso
Set TERM jumper to ON
Set unlabelled jumper (which is TERMPWR) to ON
Done