It worked!!!! I was able to install the Dani driver on a working machine and mount the 40 gig drive and install the driver now it's booting just fine.
I feel very lucky that there are people out there this generous with their time and knowledge. Thanks ddan and Fahrvenugen. Is there and add I can click on somewhere for you guys? LOL 
Hi Millese,
First, don't feel "idiotic" or anything like that. OS/2 can be a bit of a challenge to understand, especially at first. But rest assured you've found one of the best places for help.

Glad to hear it worked, and glad to help! I know I've benefited from the knowledge of others over the years, and am happy to help when I can.
As far as the other questions about how to create another boot drive, once you get a booting system (which is probably a good idea, create a "spare" bootable drive and leave it on a shelf somewhere if you have a drive failure in the future)... here's my suggestions.
As mentioned, DANIS506.ADD (and IBM1S605.ADD does this too, but not as well as the DANIS driver) over rides the BIOS settings on a hard disk. So if you can get a computer to recognize a hard disk enough to boot, once DANIS506 kicks in, it does the work. But on older computers, it can sometimes be difficult to get the computer to even just recognize the hard disk. So here's what I'v found...
Newer systems generally don't have a problem, but older systems with LBA turned on in the BIOS still sometimes have issues with the BIOS recognizing anything above 137 Gigs (I have an old P3 that has this exact problem). Unless you know your system will recognize it, get a spare drive that is less then this (I recommend either a 40 or 80 Gig to be safe.... and I know 80 Gig drives can still be found new... but you *will* need to have LBA turned on in the BIOS).
For partitioning the drive, OS/2 version 4.52 (or eCS) is not limited by where the boot partition is on the drive, but older versions of OS/2 (version 4.5, Version 4, and Version 3) the boot partition needs to be within the first 1024 cylinders of the drive.
So given that it looks like you have Version 4, I'm going to play it safe, and guess that you might have the older version of V4 instead of one with LVM. Having said that, here's what I would do:
1. Get a 40 (or 80) Gig HDD
2. Set that drive to be a "Slave", install it in a computer that currently boots to OS/2, make sure the drive is showing up in BIOS, and boot up OS/2
3. When in OS/2, fire up fdiskpm.exe - open up an OS/2 command prompt and type fdiskpm.exe
4. In the FDISK window, make sure you select the "new" drive (it'll probably show up as drive 2 or 3 or something like that, in the top part of the GUI, when you select it the drive will probably show up as "unpartitioned" too)
5. Use the menu options to install boot manager on to that drive
6. Create a primary partition on that drive, something relatively small to make sure it'll be within the first 1024 cylinders (4 to 6 gigs should work)
7. Once you've created the partition you may have to reboot to get it to assign a drive letter. Sometimes it will assign a drive letter, sometimes a reboot is required.
8. Once rebooted, you'll need to format the drive, format with HPFS (start an OS/2 command prompt and type:
format x: /fs:hpfs
where X is the new drive letter
9. Once formatted, use the command:
xcopy d:\*.* x: /H /O /T /S /E /R /V
where D is your boot drive, X is your newly formatted drive
10. Once everything has copied over, use the command:
sysinstx x:
This is like the old DOS bases SYS command - it copies over a few boot files
11. Start up fdiskpm again, make sure your partition on that new drive is set to bootable (or startable)
12. Once done, put the hard disk into a machine as the primary master drive and test it. It should boot up. Once it boots up, you may have to start up fdiskpm again and set the Boot Manager partition as "startable" and add the new "boot" partition to the boot manager menu.
13. Once you have a booting system, you can also partition the rest of the space on that hard disk for data if you like. Just use fdiskpm for that.
Just a side note... use caution when using fdiskpm. If you have the wrong disk selected (for example, if you have your primary boot drive selected instead of the "new" drive you're trying to partition) you can run into a situation where you mess up your boot drive! Check and double check to make sure you're working with the correct drive before saving any changes!
Hope this helps!