emulatorII-list

Sorry if this is getting boring for those who read this, but I have 
some updates.

Firstly, My EII is a REV 0, but it has been upgraded, and can 
communicate with my MAC IIsi fine.. But to be honest, I'd prefer 
using my MAC Classic II as it's, well, more compact.

I re-formatted my mac classic II with a nice fresh install of OS 
7.0.1 so there should be minimal conflict issues.
(I'll post up a walk through for others of how to do this soon + 
OS.7.0.1 files [the ones from the mac site seemed corrupt])

When using SD with my EII, I can play it remotely with the onscreen 
computer keyboard etc (So comms are kinda working) but when I try and 
do anything like sending or receiving a bank etc, the EII's drive 
whirs for a bit, then the EII locks up with a message "Under Control 
of MAC" and no button pressing etc will free it up.
The mac flashes up the error "Can't control with Emulator II ..."

I've tried both ports (Printer & Modem)
I've tried turning apple talk off & on, still no luck
Virtual memory is off. (I've tried with it on as well)
32bit mode is off (I've tried with it on too)

Any other options etc?

Thanks for your help
Regards
Mike