Try this first:
-hold down the [control]+[Apple]+[p]+[r] keys all at the same time.
-turn the power on
-Continue to hold the keys down until you hear the "startup" chime for the third time (assumeing you get one reboot w/ the keys held down)
-Release the keys
Any difference? Do you consistantly get the flashing drive screen now? This is officially called "zapping the PRAM."
PM me w/ the SAD mac hex code... I can probobly tell you what it means.
"Sad Macs" are often just software related, but can be hardware related. Could be a simple as a bad cable or as nasty as bad circuit on the MB.
In any case I have an archive of old system disks. I probobly have the set that came with your portable (I still have an SE and an '040 PB around). They are disk images that you would have to have an 800k drive to write.
Like I said, if that doesn't fix you up then PM me. I've also got some great B&W games (Bard's Tale, Wizardry, Dark Castle, etc...).
P.S. I think the Mac Portable came only with 1MB of RAM. I could be wrong, but if I am not System 6.0.8 is a far better choice. In any case its faster. And I believe there is a TCP/IP for it too.
Laters