@Amiduffer
You need Phase5/DCE accelerator with bootable SCSI interface (1230-IV/1260 + SCSI Kit, BlizzPPC SCSI models at least) and SCSI Zip/Jazz drive. Then just partition/prep the zip disk just like ordinary HDD (SCSIConfig or HDToolBox). Works fine.
However, if you have bootable SCSI interface, why not use real SCSI hdd or SCSIDE then... :-)