Awesome. I've been wanting to finish that, but I scratched my CDROM. True story. Also, I don't have Windows 95 or an optical drive anymore. Is this one of those deals where the art assets are removed?
If you scratch a CD, as long as the scratch didn't scrape off the "label"/data side, you can just buff the surface of the disc with Brasso (brass polish) and a lens cloth. I'm not even joking -- you basically smooth away the scratches. I've done this to restore so many scratched discs. Just make sure it's the clear/thick side of the disc you're buffing, NOT the label (as the data layer is just underneath the label).
Well, their build instructions are for PPC MacOS 9 (and the game has a bunch of PowerPC assembly code in it). One of their stated requirements is also "The original Mac System Shock data", so it's not clear to me if your CD-ROM would've helped or not.