If you just go format from workbench, the FastFileSystem option should be greyed out, since you've got SFS on the drive, it will format as SFS. I've had trouble before with SFS not showing partitions, I used OS 3.9 though, so I went Sys:System/Format and selected said partition from there, not sure if you can do that on 3.0 though..
I've found 1.236 to be very stable though.
Robert