Back to your original question: getting the RetinaZ3 to work.
The default settings in P96 are wrong and they must be adjusted to the proper ones (at least for those settings that work); Johnim who borrowed my posts put together a "P96 Res[olution] Guide" that shows where to get the correct numbers to put into P96 for any compatible resolution (provided both the monitor and RTG card support it). I have done it about 6 times with no problem. I have tried CyberG V4 (from official CD) without success in the past. But now use only Picasso96 2.1c (google it).
You will find Johnim's guide in Amibay's AmiOracle in the stickies section.