Yes, I did get the schematic done, and it does work. I have finished a layout of the schematic I have, but I'm not at all happy with it, so I'm going to re-do the schematic to take out the 40 pin connector for the normal IDE drive, and I'm going to take out the 4 pin power connector. Then I'm going to re-lay out the board with a through-hole 44 pin 2mm IDE connector rather than the surface mount one I've got in there right now.
Yah, you should be able to make these guys pretty cheap. The most expensive part is the CF connector, cheapest I've found them is like $6 each. Yikes.
If you e-mail me, I can send you what I've got so far and you can play with it or build it or whatever. E-mail me at brian_schmalzNOSPAM@yahoo.com (remove NOSPAM) and I'll forward the Eagle files to you. I'm glad you want to work on this - I just haven't had the time!