IIRC, v37.350 was the last version of Kickstart 2.05.
I have a 2GB HD in my v37.300 and it works fine (prepped with HDToolbox from Workbench 2.1). I've never tried a 4GB so I can't comment, but some people even have trouble with even smaller HDs on the v37.300.
Edit: Piru got to it first. The link mentions problems running drives larger than 40MB on v37.300.
