I wouldn't bet there is a way around it, other than to download the Toaster source code and fix it ;-)
NewTek does some very low-level things in their code, and if they say to use FFS then you'd best use FFS...
I have used Toaster 2.x, 3.x, and 4.x under OS 2.04, 2.1, 3.0, 3.1, and 3.5, and all work well on my FFS partitions... with a Flyer it's best to stay as close to NewTek's recommendations as possible. Start with a stock system, get it working, and make changes incrementally. If one change breaks the system, undo that change :-D