I ran v1.0.1 with storage.ini in VMware Workstaiton v5.5.2 and I encountered this error:

..and teh following were added into the TXTSETUP.SIF
CODE
[SourceDisksFiles]
HFSLIPWU.INF = 1,,,,,,,20,0,0
A320RAID.CAT = 1,,,,,,,2,0,0,,1,2
A320RAID.INF = 1,,,,,,,20,0,0,,1,20
A320RAID.SYS = 1,,,,,,3_,4,1,,,1,4
AACCIN.DLL = 1,,,,,,,2,0,0,,1,2
AACMGT.INF = 1,,,,,,,20,0,0,,1,20
AACSAS.CAT = 1,,,,,,,2,0,0,,1,2
AACSAS.INF = 1,,,,,,,20,0,0,,1,20
AACSAS.SYS = 1,,,,,,3_,4,1,,,1,4
COCPYINF.DLL = 1,,,,,,,2,0,0,,1,2
DELPSEUD.INF = 1,,,,,,,20,0,0,,1,20
IAAHCI.CAT = 1,,,,,,,2,0,0,,1,2
IAAHCI.INF = 1,,,,,,,20,0,0,,1,20
IASTOR.CAT = 1,,,,,,,2,0,0,,1,2
IASTOR.INF = 1,,,,,,,20,0,0,,1,20
IASTOR.SYS = 1,,,,,,3_,4,1,,,1,4
MPIXP32.CAT = 1,,,,,,,2,0,0,,1,2
QL2300.CAT = 1,,,,,,,2,0,0,,1,2
QL2300.SYS = 1,,,,,,3_,4,1,,,1,4
QL2X00.INF = 1,,,,,,,20,0,0,,1,20
QL2XHAI2.DLL = 1,,,,,,,2,0,0,,1,2
QLPSEUDO.INF = 1,,,,,,,20,0,0,,1,20
QLSDM.DLL = 1,,,,,,,2,0,0,,1,2
SYMMPI.CAT = 1,,,,,,,2,0,0,,1,2
SYMMPI.DBG = 1,,,,,,,2,0,0,,1,2
SYMMPI.INF = 1,,,,,,,20,0,0,,1,20
SYMMPI.PDB = 1,,,,,,,2,0,0,,1,2
SYMMPI.SYS = 1,,,,,,3_,4,1,,,1,4
SYMMPI.TAG = 1,,,,,,,2,0,0,,1,2
SYMMPO.INF = 1,,,,,,,20,0,0,,1,20
ULTRA.CAT = 1,,,,,,,2,0,0,,1,2
ULTRA.INF = 1,,,,,,,20,0,0,,1,20
ULTRA.SYS = 1,,,,,,3_,4,1,,,1,4
VMSCSI.CAT = 1,,,,,,,2,0,0,,1,2
VMSCSI.INF = 1,,,,,,,20,0,0,,1,20
VMSCSI.SYS = 1,,,,,,3_,4,1,,,1,4
[SCSI.Load]
A320RAID = A320RAID.SYS,4
AACSAS = AACSAS.SYS,4
IASTOR = IASTOR.SYS,4
QL2300 = QL2300.SYS,4
SYMMPI = SYMMPI.SYS,4
ULTRA = ULTRA.SYS,4
VMSCSI = VMSCSI.SYS,4
;--------------------------------------------------
;VMWARE
[HardwareIdsDatabase]
PCI\VEN_104B&DEV_1040 = "vmscsi", "VMware SCSI Controller"
[SCSI]
vmscsi = "VMware SCSI Controller"
;--------------------------------------------------
The reason?
If you look in DOS, you will notice that the files A320RAID.SY_ and all other .SY_ files that are declared in [SCSI.LOAD] are missing in the $WIN_NT$.~BT directory. To correct that, you need to match those files into DOSNET.INF's [FILES] and [FLOPPYFILES.2] sections as well.
Sadly, in this case, even if you fixed the DOSNET.INF issue, you still get a BSoD.

I am still investigating...
A proprosal Rather than using STORAGE.INI, is it possible to get HFSLIP to do everything intelligently and automated. To do that, follow these steps:
*** I use QLOGIC's driver because its one of the more complicated ones
1) scan for each INF file within HKEXPERT\STORAGE for the string under the [Manufacturer] header. There can only be one string in [Manufacturer].
Example:
CODE
[Manufacturer]
%QLOGIC%=QLOGIC,NT.5.2
Watch out though, not all drivers include a comma. Most drivers look like this:
CODE
[Manufacturer]
%ADP%= ADAPTEC
2) Skip the value name but keep the value. In the above example, rename the comma in ",NT 5.2" and replace it with a period. ex ".NT.5.2"
3) Search for the [QLOGIC.NT.5.2] header and scan all the PCI\VEN entries.
Example:
CODE
[QLOGIC.NT.5.2]
%ql2300.DeviceDesc% = ql2300_Inst, PCI\VEN_1077&DEV_2432&SUBSYS_01371077
extract the vendor and device codes
CODE
PCI\VEN_1077&DEV_2432&SUBSYS_01371077
4) Take the code and intelligently place it into TXTSETUP.SIF as:
CODE
[HardwareIdsDatabase]
PCI\VEN_1077&DEV_2432&SUBSYS_01371077 = "qlogic", "????"
5) Finally, search for the value name "Floppy_Desc" under the [STRINGS] header and you can find the device name. Stick the device name into these two areas in TXTSETUP.SIF:
CODE
[HardwareIdsDatabase]
PCI\VEN_1077&DEV_2432&SUBSYS_01371077 = "qlogic", "QLogic Software Diskette"
[SCSI]
qlogic = "QLogic Software Diskette"
Oh. Be sure to declare in DOSNET.INF as well.

If you can succeed here, then you are home free.