Things won't work properly until you finish by installing the packages in the linux-2.6.13 directory. Make sure you're mounting the cd (disk 2) properly, use
more /etc/fstab
to view your fstab and check the mount point and
ls
to view the contents of the cd. The directory definitely exists, cd to it and use pkgtool to install the contents.
Use tab completion to avoid typo's, for example, type cd /m then press tab then type c and press tab then type l and press tab.