The manual is misleading. If you have System 7.x installed, then you don't need the TrueType Init. If you are using System 6.0.7 or 6.0.8, then you must use the TrueType Init. However if you use the Installer application, you do not have to drag install the TrueType Init from Font Disk 1 as explained in the owner's manual.
If you install the TrueType Init on a Macintosh using System 7.x, an error message appears at startup telling you that TrueType is already installed. If you get this error message, you need to remove the TrueType Init located in the Extensions folder, in the System folder.