@dillinger:
It doesn't sound better than that that SIMM isn't fast enough for the Blizzards 60ns mode. Even if a SIMM is marked as 60ns, poor quality ones might just manage an accesstime of 65ns.
My advice would be to get a different 60ns SIMM to try with. If that one would work there is no question about it - then your current SIMM would not deserve to be marked as 60ns.
Just for the record - setting something expandable with SIMMs to access the SIMMs with a 60ns accesstime does not mean it accesses the simm that fast, it could very well access the SIMMs with an accesstime of 65ns, while others indeed would access the simm with an accesstime of 60ns. This may be why it works for the bloke who sold you the SIMM, but not for you.
(edit):
As long as you are using an 2.5" harddrive you should be fine with the stock powersupply.
/Patrik