Just a couple of corrections.
It should be danis506.ADD and because of the 8.3 names for floppies daniatapi.FLT will need to be named daniatap.FLT.
You talk of LVM, does that mean you are using one of the later warp 4 releases as the original warp 4 did not have LVM. Depending on which version you have there may be other changes that need to be made - e.g. the version of the Dani drivers.
Disk 0 - the install disk - only needs a change to config.x if you do not rename the Dani drivers.
Disk 1 is the one with the most changes - editing config.sys and config.x as well as either adding the Dani drivers which will require the removal of some of the old SCSI drivers and the removal of them from both the config files and snoop.lst.
I would also endorse Melf's recommendation of using UPDCD as the best way of producing both an updated version and a bootable CD. Also look for OS2MT
http://www.os2mt.tk as an easy way to find updates and fix packs.
ivan