I just tried the hard disk from my Classic II but it still won't go past the grey screen (no rounded edges btw). So that's power ok and known-good HD not booting it. I've tried the hard disk cable from the Classic II as well, to ensure the problem isn't with the IIfx's cable. I've also tried moving the gfx card to another slot.
Board wash maybe?
Maybe, but it seems unlikely. Every IIfx I've seen has tantalum caps installed. I'm not sure what could leak onto the board that would need washing off, assuming the batteries have never leaked onto it.
Freezing at a gray screen can be an indication of a SCSI bus problem. Usually a very bad termination problem. So your problem may be as simple as the missing terminator. Both ends of the SCSI bus should be terminated, so even with a good terminated hard drive on the bus, you may still have problems because the IIfx end isn't terminated without the internal terminator. I think. I can't remember if the motherboard provides automatic termination if no devices are connected.
Hmmmm.
1) Have you tried it with no SCSI cable attached at all? This should get you to a flashing question mark.
2) If 1) fails, do you have a second known good SCSI drive and an internal SCSI cable with three or more connectors?
A) Do not connect any external SCSI cables.
B) Plug one of the middle connectors of the internal SCSI cable into the logic board.
C) Make sure that termination is enabled on both of your known good drives. Double check the jumpers.
D) Make sure that "Termination Power" (different from termination) is disabled on both drives.
E) Plug the known good SCSI drives into the connectors at the ends of the internal SCSI cable. One on each end.
F) Try it.
G) If that doesn't work try enabling "Termination Power" on one (only one) of the two drives.
3) If that doesn't work, buy or build the special terminator for the IIfx and try that....