I have a 589EC which works perfectly with the 3C589 drivers and MiamiDx. I am also running the CardPatch util on Aminet, and I think CardReset also features in my user-startup (I was having some occasional problems where the machine wouldn't start up properly until I removed the PCMCIA card). The other difference (besides CPU/RAM) is that I'm running KS3.1/OS3.5.
The PrepCard messages are normal - that is more or less what I get here. The light on the card won't show up until you try to connect and have an active connection (ie. cable is connected to card and some other active device). Note that it doesn't seem fussy about turning the light off, unlike if you use the same card with Windows when the light would go off as soon as the link disconnected.
Good luck! I managed to get mine set up and running in a matter of minutes, although I only use it with a cross-over connection to a PC.
Chris