The cursor looks great now, and thanks for catching my copy/paste error.
Here (and on the FTP) is an archive of P2 disks: https://mega.nz/#!yB5TCbJZ!mBRDCXFVOQNKRT5-UVIfbxbehJC1RSo1EmcKP8x6AwA
It looks as if the P2's have problems with the disk ready signal - formatting the disk in drive 1 just hangs, whereas trying to format in drive 2 explicitly mentions a drive that is not ready.
To replicate this situation, insert the disk "P2_ssdd_basic_foko_disk_util.IMD" from the archive, boot the FOKO disk utility by entering "B1" at the MOS prompt and try to format a disk in either drive 1 or 2.
All dev folks, thanks for your patience and expertise!