Yep seems to work just fine. I'm actually running 7.5.3 and 8.6 on the 5400 now and it works fine in both. I've browsed online and copied files over and back with the iMac on the same network via Personal Web Sharing and FTP. I can't get AppleTalk to talk but I've never used it before and there's a PC on this network too which might be interfering with things. Was hoping I could share my SW1500 with the iMac.
I can't check if it would work on anything before 7.5.3 as that's as low as this machine will go, but I'm sure someone here will take up the challenge.