Hint for formatting the CF-Card: use the most recent disk utility software (I use the disk utility from a recent PowerBook running OS X). Make sure to use HFS+ format and install OS 9 drivers. In case you will install OS 7.6 use standard HFS. To avoid the PC card adaptor being kicked out of the slot each shutdown, do a Sys. 8.1 installation from CD _without_ having the disk driver 'updated'. Other versions of Mac OS installers might work as well, but Mac OS 9 does not. Afterwards just copy a preinstalled System Folder of your choice onto the CF card and 'bless' it.

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For system versions below 8.1 it will be necessary to use standard HFS format. To fix the "eject on shutdown issue" try to use your 7.6 installation software and install the system directly onto the CF card. Some third party disk utilities might also be able to manipulate the eject on shutdown behaviour for removable CF media. I have figured out to fix the problem with the Mac OS 8 installation CD. No success with OS 9. Other versions of system installers might work. I recommend to use the most recent driver to support compatibility with more recent machines. After fixing the eject on shutdown thing just copy a backup of your current system installation onto the CF card and 'bless' it to be the system folder to boot from.