Yup, that was me! I had that problem with my Color Classic and 7.6.1. However, My PowerMac 6500 has no such troubles with 7.6.1-9.2.2.

Here's what I posted on System 7 today as a workaround.

Just found out that I can connect to my iMac with 10.5 by using AFP Enagage! that comes with Shareware IP. It doesn't let you log in as the owner, like the chooser offers, but it will get you connected to shares you have manually setup in OS X. Note: Mine give me an error that it fails to mount the AFP URL I've typed in, but it mounts regardless.