I think I am running into this same issue. I just formatted my 4.5gb SCSI HDD and tried to partition it to two 2gb partitions. The same problem, set disk one to be the bootable and automount but it didn't help. I am not to familiar with the old OS partition software and have had to reformat several times after changing things and making the disk unmountable. It will read 2gb and that's it. If someone can tell me how to get this solved I will gladly try again. Normally I am pretty good with troubleshooting things like this, but not this time.

I don't know how to format in HFS+ and checked to see, it is formatted in HFS. I gave up on this and just left it as a 2gb format wasting 2.5 gigs. I don't know what else to do.