Yes this is a library problem alright. Turn of the card by holding down "2" under boot and install WB and the new 040 and 060 librarys.
I had the same problem with my A1200 with B1260 and then even more problems with my A4000 with CSPPC060 as it don't have a fallback mode so I just made a modifyed install disk with the extra librarys on disk, works like a treat. :-D
