There is indeed a problem between OS3.5 and using VT / VF. While the root cause of the trouble was never fully determined (generally believed to be caused by installation scripting and a few library changes) the following is known:
1. OS3.5 was never beta tested against VT / VF. Apparently when OS3.5 was being developed, the toaster somehow was overlooked. Go figure (this statement from Haage and Partner when I encountered trouble with my toaster while installing OS3.5 way back when. I emailed them for help and that is what they told me).
2. If you were upgrading from OS3.1 to OS3.5 with toaster s/w already installed and running, it was "hit or miss" if the upgrade would cause the toaster to quit working (some people had no problems, others, including me could not get the toaster / flyer to start after upgrading). Clean installs of OS3.5 and toaster s/w encountered similar issues.
3. Upgrading from OS3.1 to OS3.9 caused very few issues for toaster / flyer users. Most people (myself included) readily dumped 3.5 as soon as 3.9 came out.
As others in this thread have already suggested, get OS3.9 instead. OS3.5 was basically useless to toaster users.
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With regards to your ROMs, keep them. Just move on to OS3.9 and you will be much happier. Put the OS3.5 CD on your shelf of s/w never to be used again or sell it on ebay. I would suggest that you reload your system using your old OS (ver 3.0?) and when you know everything is running, upgrade to 3.9. I have found this method to be better for toaster users then doing a clean install.
Regards,
Lee Stanford