Yes, both bootable.
I'm using SFS, which both 3.9 and 4.0 are happy with.
I put the two partitons in the 1st two gig as I had problems when using the 1st 4 gig although that should have been possible.
Probably easier to start of with OS4 1st, as you can boot from the floppy provided and the installation goes ahead quite easily.
The tools for partitoning and formatting are all there.