Your problems are caused by the setup differences between GS/OS 4.0 and
5.0.2. Here are the steps to make a bootable GS/OS 5.0.2 diskette that can
print to a LaserWriter and/or ImageWriter:
1) Boot GS/OS 5.0.2; format a blank 800K diskette and called it "Startup".
2) Run the Installer program from the SYSTEM.TOOLS diskette, and
install the option "AppleShare on 3.5" onto the Startup diskette.
3) Still within Installer, "Remove" the option called "AppleShare"
from the Startup diskette.
4) Using Installer, install the LaserWriter and LocalTalk ImageWriter
options onto the Startup diskette.
Hint: try to have two 3.5" drives--if you don't it may take you up to one
hour to do the above with only one floppy drive.
This will get you a bootable diskette that contains the absolute minimum
operating system and the necessary printer drivers. From a hardware
standpoint, make sure that slot 1 in the Apple IIGS control panel is set to
"AppleTalk" and that you set AppleWorks to print to slot 1 -- the older
Apple IIGS had a different control panel setting.
Note: you may not be able to fit both the operating system and AppleWorks
onto a single diskette.