Is the PC1 mount file in the Devs/DOSdrivers drawer. Make sure you boot without a 5.25" in the floppy drive as on mine it does not recognise the disk. Next, is the NDOS appearing even without a disk in the drive. What happens when you insert a disk... you should see an Amiga disk style NDOS and a PC style NDOS so that you can either format as Amiga or PC.
Have you switched anything on the back of the drive.
Don't forget that there are no guarantees as we have no idea what the drive is and how they should work. On the PC I have to enable certain things from the BIOS to get some floppy drives working.
One final thing also.. it may be faulty.
We just keep trying. The fact that the computer locks up isn't a good sign I have to say Have you got SysInfo. If so check the drives from the button in SysInfo and see what it says about mounted drives.
One last thing.. bit like crossing the streams in Ghostbusters. I know I said that don't put a floppy in, well try booting with a 5.25" and see if the drive activates when you boot the Amiga.
Have you edited the info icon as I said ... not the mount file but the info file.
I am not sure what you mean by editing the info file and not the mount file??
When I don't double click on the PC1 file the drive pops up as DF1:

?
When I try to format it the format utility start and after clicking on format the drives spins and a couple of seconds later I get the following error message:
I/O-error #21
When I insert a disk into the drive and starting up my Amiga, the drive spins.
Checked it with SysInfo:
The result:
NUMBER OF DISK ERRORS 0
UNIT NUMBER 1
DISK STATE Disk not validated
TOTAL NUMBER OF BLOCKS 1758
TOTAL BLOCKS USED 1757
BYTES PER BLOCK 488
DRIVE/DISK TYPE No disk inserted (doesn't change after inserting a disk. Reason: not formatted??)
DEVICE NAME trackdisk.device
SURFACES 2
SECTORS PER SIDE 11
RESERVED BLOCKS 2
LOWEST CYLINDER 0
HIGHEST CYLINDER 79
NUMBER OF BUFFERS 5
I have changed the PC1 mountfile as follows:
Device = trackdisk.device
Buffers = 5
....and the rest of the file I kept unchanged.
Now the disk comes up as PC1:

? instead of PC1:NDOS
Also when I try to format it, my Amiga does not freeze. When I uncheck verify in the format utililty the format progress bar is running. Only the head of the drive does not move.
When I check verify and try to format I get the same error I/O-error #21
When I manually move the head of the drive to the center of the disk and switch on my Amiga the head moves to the edge of the disk.