I have finally found a way to create a ghost boot cd after over like 50 attempts. I used winimage, ghost 2003, nero, and pc-dos 7 to make my cd. This cd will allow you to have usb 1.1 and 2.0 support and read from cd-rom drives.

Tip, assign a usb flash drive to B: using diskmgmt.msc to obtain the ghost boot files.

1. First, you MUST obtain a copy of IBM's PC-DOS 7. Use a file sharing app if neccessary.

2. Then make a copy of the pc-dos image (so that you don't mess with the original)

3. I used winimage to inject the ghost boot files into the pc-dos image (cause the pc-dos image has the boot sector)

Note: Before injecting files, you MUST change the image format to 1.44MB AND make sure that you DO NOT go over 1.44 MB. If you change it to a larger format, the boot image will not work.

Anyway, here is my directory tree (WinImage's view):

\
     -Autoexec.bat
     -command.com
     -config.sys
     -guest.exe
     -ibmbio.com
     -ibmbdos.com
     -mouse.com
     -mouse.ini
     -oakcdrom.sys
  \Ghost
     -ghost.exe
  \usb
     -aspiohci.sys
     -aspiuhci.sys

Here is the autoexec.bat file:

@echo off
SET TZ=GHO+05:00
GUEST.EXE
MOUSE.COM
MSCDEX.EXE /D:cd1
echo Loading...
cls

if %config% == FROMFLPY goto FLPYBOOT
if %config% == FROMCD goto CDBOOT

goto FAILED

:FLPYBOOT
echo Insert Ghost boot disk 2 (containing Ghost.exe)
pause
if exist a:\ghost\ghost.exe goto GHOSTFND
goto FLPYBOOT

:CDBOOT
echo Insert Ghost boot disk 2 (containing Ghost.exe)
pause
if not exist b:\ghost\ghost.exe goto CDBOOT
b:
goto GHOSTFND

:GHOSTFND
cd \ghost
echo Loading...
GHOST.EXE 
goto END

:FAILED
echo Unknown boot menu selection
goto END

:END

Here is my config.sys file:

[menu]
menuitem=FROMFLPY, This computer was started from a Ghost boot disk
menuitem=FROMCD, This computer was started from a Ghost bootable CD

[FROMFLPY]

[FROMCD]

[COMMON]
DEVICE=oakcdrom.sys /D:cd1
DEVICE=usb\aspiohci.sys /int /all /D1
DEVICE=usb\aspiuhci.sys /int /all /D1
LASTDRIVE = Z

Here is the mouse.ini file (Note: I don't know about USB mice):

[mouse]
MouseType=PS2

I hope you guys can figure it out yourselves.

If you do succeed, you MUST select "This computer was started from a Ghost boot disk." Press any key when you are asked to. (You do not need to put in another disk)

When you make the boot image in nero, you must select "image file," browse to the image you created, and DO NOT ENABLE expert settings.

It is reccommended that you use a cd-rw in case you make a mistake and quick-erase the cd if you do.

Any correction is appreciated.
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To add firewire support, add this line to the config.sys:

DEVICE=fwr\aspi1394.sys /int /d1

Then add the aspi1394.sys into a folder in winimage:

\ 
     -Autoexec.bat 
     -command.com 
     -config.sys 
     -guest.exe 
     -ibmbio.com 
     -ibmbdos.com 
     -mouse.com 
     -mouse.ini 
     -oakcdrom.sys 
  \Ghost 
     -ghost.exe 
  \usb 
     -aspiohci.sys 
     -aspiuhci.sys 
  \fwr
     -aspi1394.sys

This may not fit in the image! Remove an unnecessary driver and its corresponding line in config.sys. 
For example,if you remove the oakcdrom.sys, you have to remove its entry in config.sys.

Regarding the first post that I made, you MUST NOT overwrite:

command.com
ibmdos.com
ibm.com

Also, you can remove (these files are not needed):

format.com
sys.com
fdisk.com

This can free up image space.