Hey,
Not long ago I obtained a copy of MacOS 8.6 in .iso format for use in sheepshaver, but it turned out to be damaged so I made a .dmg copy in disk utility, copied the contents of the original .iso minus a user-added 'xtras' folder that sheepshaver didn't seem to accept (I guess because not included in retail CD?). Anyway, i formatted it into Mac OS standard (HFS), verified/repaired it (was OK), and converted it back into .iso format and locked it, but when I run it in sheepshaver I just get the blinking question mark at startup. Any ideas with what i'm doing wrong?
