Non-cooperation of a Master drive on an IDE bus is typically the fault of the drive's firmware in my experience. (Speaking as someone who QA and integration tested an awful lot of different manufacturers drives.)
That said, there is/was a bug in the Peg firmware, very similar to the 'reset race condition' on the regular Amiga...symptom is that it will not boot from a hard reset (cold boot) but will from a soft boot. Did firmware 1.1 fix this bug.....have no idea, will find out once I receive my PegII!
Unless his friends machine has the exact same hardrive (or one from the same family) as he does then it's not comparable.
Given that you have a pre-april pegasos, I would stay with as few devices as possible...adding more would increase the probability of seeing a problem.
Steve