OS X does not natively support the SWIM floppy controller in pre-iMac Macs. Thus, by default, it cannot read *ANY* disk in an internal floppy (like in a Molar Mac.)

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Great info. I've been obsessively tracking down all sorts of info to make the section on Disk Images extra-comprehensive.

I take it this also includes the floppy bay module for the G3 PowerBook series like the Wallstreet? Does that module also read 800Ks under OS 9?

Use a System 6.0.8 NAD. One of the best recovery disks I've ever made.

I have even made 6.0.8 NADs with 800K disks (2), with a full finder and features. It's a bit tricky, but completely possible.