Well, I'm happy to report that both the SCSI upgrade that I repaired and my home made cable work perfectly fine with a regular older Apple ROM HDD.
So it looks like it's the SCSI2SD that's causing the problem.
It's still pretty darn fast even with an old HDD. Booted just as fast as the SCSI2SD with System 2.1 as far as I could tell.
So it looks like it's the SCSI2SD that's causing the problem.
Do what now? I have FWB Hard Disk Toolkit 2.1, Lido, and Anubis Utilities. If any of those can do that, then I'm all set. If not, then I can't.
It's still pretty darn fast even with an old HDD. Booted just as fast as the SCSI2SD with System 2.1 as far as I could tell.