Hang on a second!
How much memory does your '060 have set to autoconfig? (Check your jumper settings)
I know others have touched on this, but for example, if you have more than 6mb set to autoconfig on any other devices, your PII won't work...ever.
Obviously the figures vary depending on graphics card memory, so a graphics card with 4mb on board can only allow another 4mb of autoconfig memory from another device/devices, like processor card, HDD controller, etc.
This would be about the ONLY thing I figured out myself with regards to the Picasso...LOL

PZ.