I have used Parnet to connect my Amiga 500 with my Amiga 1200. Haven't got any problems with it at all, even though the Amiga 500 is running Kickstart1.3.
I have been using a cable that's about 10 meters. I have been told that it's not a good idea to go further, but haven't got that confirmed.
Only thing I remember about Parnet is that it's a bit tricky to get disk icons for each drive on the remote computer, but since I only used the setup once or twice a year I didn't bother playing around with it.