Sorry about the confusion regarding slots and disk sizes.
I personally have a blue-and-white with a G4 (PCI Graphics) or Yikes motherboard in it, but if it's confirmed that Rev 2/B G3 board fixes it, there's no good reason to bother with that board, it's just how I got mine when I bought it back in the day.
I've had relatively little trouble with IDE on my machine, but I've also tried relatively few disks with it. It came to me with a stock 6GB disk in it, and I later used it with a 10GB out of a random PC, a different 20GB out of a random PC, and at least one disk of around 120GB or so. Never larger than that, more by accident than that I knew at the time I was using the machine actively (2005-2007) about the limit.
I
believe the first machines Apple shipped without the limit are the 2002 QuickSilver G4 and the 867/1000MHz PowerBook G4. I don't recall which eMac, iMac or iBook revisions don't have it.
The big gotcha with the 2002 QuickSilver G4 is that you have to use very specific OS 9 media with it. The eMac 2003 CD works, otherwise it's best to use the original media.
My personal favorite 2002 QuickSilver restore media is Macintosh_Server_G4_Restore_ASIP_6.3.3v1.3.toast_.zip on
http://macintoshgarden.org/apps/mac-os-9x-project-replace-existing-page - this file is actually what I"m running vtools on and it's a QS2002 restore CD. it restores if you have a QS2002, and I'm told on other machines you can just mount the disk, copy the contents of the disk onto the destination hard disk and manually bless the system folder. (you can burn this .toast file with an ISO burning application on Windows/Linux, I used InfraRecorder myself.)
One more thought: can blue-and-whites boot off of firewire? I remember something a little quirky about the early firewire implementations but I can't remember off the top of my head what it was.