Can you post a picture of the drive? Something about those numbers rings a bell. Are you sure it's a 1 GB drive and not a 2 GB drive? IBM sold an odd ball 2 GB drive which showed up in a lot surplus type places for a while, which did not fit in their normal part numbering scheme. My memory says it was a 0664 instead of 0662 but how accurate is that memory likely to be? Anyway, the thing had a sort of frame around it instead of the solid cases we're used to now and was half-height 1.65" tall.
The thing about this line of drives is that there's no termination jumper. IBM shipped the drives with a pass-through terminator one could put on the ribbon cable at the drive connector, but those terminators all got lost by the time the drives showed up on teh surplus market.
Anyway, I have not read the whole thread, but I expect you have a termination issue. Folks might to attack it from that angle.