It seems like we have a thread on this topic every other month.
Ultimate future reference:
Kickstart 2.05 consists of several different revisions.
37.299 - IDE and PCMCIA support is broken. No hard drives will work.
37.300 - IDE drives up to 40MB will work. Drives above that size may work.
37.350 and above - Any drive should work within the 4GB limits of FFS and Commodore's scsi.device. There will probably be trouble upwards of 128GB.
Save yourself the headaches and upgrade to 3.1 (40.63).
EDIT: Fixed revision of 3.1
