Installed Sheepshaver on an Intel iMac with some initial difficulty using a memory stick and the Unix disk. When I put some Mac items on them and started SS, it changed their icons and made them inoperable. The Unix format apparently made the files look like Unix executable files instead of Mac files. Solved by burning CDs with information right from the other OS 9 machine.
The "Unix" shared folder/disk will indeed damage Mac-specific file properties. You can use additional disk images to move files, mounting them alternately in MacOSX and MacOS (mounting at the same time in MacOS and MacOSX may cause corruption of the image directory content). Or you can encode files, encoded files (remember binhex?) will survive transport via the "Unix" shared folder/disk.
Here's where I get really confused: The entire reason that I'm in need of SS is to run an old customize 4AD JIT server program. It can access the computer via TCP or another protocol that starts with an A (not AppleTalk). However, I believe Apple Talk has to be working and Open Transport. I am running 8.6 and the other actual PPC macs using this server and its software are running OS 9. However, I do have internet access, but no IP address shows up in the TCP/IP control panel. Using IE, I can access the internet but the server does not show up.
This is confusing. You can access internet from the virtual 8.6 Mac while there is no IP address in the TCP/IP control panel? When you open TCP/IP control panel after accessing the internet with IE you will probably see the addresses that are obtained using DHCP. TCP/IP control panel is part of Open Transport, it is Open Transport that is being used.
Note that these IP addresses are not addresses that belong to your LAN. With slirp networking your virtual Mac is not on your LAN directly, but connected to it through a TCP/IP subnet. That is why you can use TCP/IP networking and also AFP (Apple Filing Protocol) over IP, but not AppleTalk between the virtual Mac and devices connected to your LAN.
I just read that SLIRP (the ethernet adapter protocol in SS) does NOT support AppleTalk and that "...your computer can access the Internet, but others on the Internet cannot normally access your computer." I don't think this would apply to LAN computers like the server, however.
The server on your virtual Mac is not directly connected to your LAN.
I've also read that SS is not network compatible at all (love the authority with which some sites will sling BS!).
Hm, may have been a comment about an earlier version of SS?
Does anyone know if this is a matter of OS upgrade? I am at 8.6 now. Would 9.0.4 work better? Any help would be REALLY appreciated!
I don't think 9.0.4 will make a difference in this respect.
I understand that it is possible to have MacOS on SheepShaver for Windows connect directly to your LAN using the Basilisk ethernet driver. You could try installing Windows XP on your Intel iMac using Boot Camp and then use SheepShaver for Windows. However, in your case it seems to me more appropriate to use one of your OS 9 PPC machines to run the server.
Maybe it is time to try and find a different server solution? Eventually you will need to anyway.