Maybe, but the drive was already formatted once under MacOS 9. So really does not matter at this point. I would think that even with an updated driver on it, the SE should be able to see it and format it subsequently installing its own driver.
Yes there is a 2GB ceiling under System 7, as I mentioned above. So I bump them a few MB under to be safe. I am going to try another mobo quick, just to rule it out though.
Last night I did read up about patching HD setup and how it works better than HD SC Setup. So I will try that too.
http://www.euronet.nl/users/ernstoud/drvsetup.html