I think it can use partitions. But it maxes out at MacOS 9.0 or 9.1 and there's no networking support, plus all the other classic alpha-quality Jim Drew issues.
I can't remember if serial worked but if it did I guess it would be possible to have some kind of virtual SLIP network.
Fusion3.2 worked nicely, although iFusion is quite alpha and nowhere as good as Fusion3.2... MacOS9 is enough to run interesting games like Starcraft or Diablo and it doesn't require tons of ram, OSX would be useless with the 128MB of the cyberstorm (or the 256MB of blizzard).
A sheepshaver port using real cpu on OS4&MorphOS would be nice