It seems that you get the right answer : the disk drives do not accept the interleave = 1 option, as lesat as far as HD SC setup is concerned.
I will try to use others formatting software to check out if I can solve this problem.
I agree with you : I do not understand why this 4,2 GB HD is able to boot with my Mac Plus. The driver is register as ".ASC00" that seems to be the Apple HD SC setup one, and the interleave factor is 1 !