6.08 is the sweetspot for these guys. I have 7.01 on my classic ii, and I won't lie, feels a bit slower. But I haven't maxed my RAM out yet, not sure how much of a difference that will make. I'm thinking I will do a clean install of 6.08L and copy all my apps etc over from my external jaz, then make my backed up 7.0.1 jaz disk optional if I really need system 7 for whatever reason.

Props on the cool mod! What do you have to do to prevent the zip from ejecting?

I agree on widening the disk slots to accommodate the zip disks, that would be impressive!