Hi,
I have been having exactly the same problem with the newly-built Thylacine on an A3000 with 68040 - i.e. very sluggish (slideshow-style) performance culminating to complete lock-ups. This thread was the only other place I had come across that reported this type of behavior so now that I've solved it I thought I'd report what I did.
I was getting this behavior as soon as Trident (Poseidon's GUI) went online. I found some time to attempt re-installing it on a clean WB install and noticed that the Thylacine installation script sets up the startup-sequence (or user-startup, not sure now) so that its own (rudimentary) USB stack starts on bootup. When I removed the offending line from S-S (or U-S, whichever applies) and rebooted Poseidon worked well and is actually quite usable. I managed to connect various devices (a microsoft usb mouse and a d-link ethernet dongle) on a powered USB hub and for the first time even to transfer some files from a USB stick. What I know suspect was causing the lockups was the fact that I was in fact running two USB stacks at the same time.
I thought I'd leave this information here for others who may have as careless as I was when installing it. Many thanks and have a great new year!
