You have a very nice piece of kit and it would be a shame to use it on a Mac of limited performance. The Wide SCSI in the box should nicely degrade to Narrow SCSI II (as you have on your LCIII), but performance will be limited (ie I would not expect random errors, just slowness).

Why not save up for a nice PCI PowerMac, a 10/100 PCI ethernet card and a SCSI card with a Wide external interface? You'll have a monster server with ridiculous storage and the ability to deliver any file in the bat of an eyelid.