Hopefully this may help some poor souls out there. I was finally, after many many attempts, able to use the cue file to make a BeOS boot cd and installation. The whole trick is Nero. Why, I don't know, but I tried 3 other softwares and none worked. The working cd consisted of three files, all of which correctly went on only after choosing just the cue file and nothing else. I can now go to sleep.

There is a boot floppy for dan0 on http://gizunia.blogspot.com. The blog is something like Gizela Heyn divorce if that is the wrong address.The file seemed kinda hidden its in the secret file section,then click on beos, then click on utilities, he also has the alpha java, media kit, and the pre alpha opera on there, and right underneath the bone.zip there is bonebootfloppy.zip.
Hope that helps.
Erik