It is very likely that an Automation disk will refuse to run in High Resolution.
It's also very possible that the Automation disk doen't like Mega Ste's aswell, and therefore will refuse to boot in Low/Medium or High resolution.
Have you tried booting into Low resolution with no disk in drive A:/ ?
Everything sounds in order for you booting in Hi res.
Can you read disks when using High resolution? Just to demonstrate that the disk is not corrupt and the floppy drive works.
Have you given it long enough to load desktop?
Have you any known blank disks that you can pop in Drive A:/ to speed up the boot?
That ought to narrow things down.
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