I would be a little suspect of the 1.1 distribution if I were you.  It 
had numerous bugs in it, and I don't seem to remember it booting very 
well on my IIci.  I'd get a more recent kernel and binaries (although 1.2 
_should_ be released relatively soon) as well as the newest utilities 
(like the booter and the installer utility).  There is a known problem 
with the installer not having enough memory in it by default.

As for the networking problem, yes, I've had similar problems.  If you 
boot with extensions off, this will also solve the problem (the problem 
appears to be with either AppleTalk or AppleShare, I'm not sure which).

Later.

-- 
Colin Wood                                      ender@is.rice.edu
Consultant                                        Rice University
Information Technology Services                       Houston, TX