Duh, it's in French! LOL
According to Apple it should work, so French or not, I'll be trying it out as soon as I can. I think v.2.2 has more automation as well. I need to find some old MacTerminal books and dig into it more since this is likely to be the only method available on a stock 128K or 512K for some time (indeed any 68000).
It's great that I can bypass Sheepshaver. It is unfortunate that MFS Lives is not compatible with Leopard since that would mean one could simply open a 400K MFS disk image and load a file directly into XTerm, keeping everything native. I guess for now all MFS disk images will have to be copied onto HFS disk images and loaded from there. It's just sometimes those files introduce corruption, especially the System files.
Napbar, make sure you use the MFS 800K disk hack with your 128K. It really saves time giving you over 400K more disk space to copy files onto. Theoretically you can have over 1.6MB of storage using it, that's like a hard drive for a 128K.