@leirbag28:
From my experience you first of all need to place the partition ShapeShifter is supposed to use in the first 4GB of your harddrive or it will overwrite data somewhere in the first 4GB of your harddrive. Secondly it has to be less than 2GB or MacOS will fail to format it - this atleast is true with System 7.5.5 and should be the same on all 7.x releases. The ShapeShifter manual also states that the BlockSize for that partition needs to be 512Bytes so it might be a good idea to stick to that size.
/Patrik
