Thank you for such a quick reply!

Regarding transdisk:
I don't understand what you mean by transferring to a file first, since I have only 1mb - when I boot into WB1.3, I have 888216 bytes of free memory, but the ADF image file is 901120 bytes (=880k). That's why I chose this method - as I understand, it should write directly from the serial port to df0, without requiring 880k free memory. Or did I misunderstand that transdisk method completely?
I've seen links to some other transfer software, but most of these programs are Kick2.0+, so that's a no-go in my case.
Regarding HD:
Something strange is happening - I take a freshly formatted 1.44mb floppy and put it into my Amiga - the following procedure:
1. WB loads completely
2. I eject the WB disk and insert formatted HD disk
3. An icon with "DF0:BAD" appears - I click on it, then right click on Disk and select Initialize
4. It asks me for WB1.3, so I switch the disks again
5. Asks me to insert the disk to be initialized and I do that and say Continue when it warns me that all data will be erased.
6. It starts formatting - it says formatting and verifying cyl 0 two or three times and then quits with the following message:
Initialization failed
bad sector number
try a different disk
Is it possible it is a hardware problem? Something like a dirty fd0 or misaligned head or something completely different?
[Edit: I've just tried the same procedure with some DD disk and it was the same error!! Then I tried formatting with X-Copy 9 and strange things happen:
First I formatted the top side and it completed successfully. Then I tried the lower side and verify errors appeared on the first half of the disk.
Then I tried formatting that HD disk, first the top side, then the lower. Results? Top - verify errors on the first 15 of 79, it's ok from then on. Lower - first half has verify errors, it's ok from then on.
And another interesting thing - I tried formatting the upper side again, and there were errors up to 11 and ok from then on. 11 to 15 were "healed" or what? This is getting very very strange...

I hope that this additional info is helpful in any way.]
Sorry for these newbie questions, but I have no idea what's wrong!

And sorry for that off-topic HD stuff, but it *is* related in my case, since that seems to be a part of the problem with transferring from PC to Amiga.