I assume you have created the Bootable CD.. and are booting the computer from it. I am prob wrong.. but when you boot from the CD it may be assigning C: to that drive. or possibly it doesn't load the files it needs to see the C: drive .. files that you need to include on the Bootable CD and entries into the Autoexec.. and Config files?
You could modfiy the switch to be a:\navdxlog.txt and have a blank floppy in the a: drive? but to do that I guess you would need to reburn your Bootable CD.
Not much help from me.