Michael,
I don't seem to have any problems at all using a 2mb Horizon, it works perfectly!

As to the HD troubles, they seem to be intermittent. I ran the emulator for about 4 hours straight last night, organizing the main HD for the TI. Most of the time it seems ok. It only seems to give me trouble when I transfer certain files from a floppy image over to the HD. I have been thinking it might have something to do with using Myarc's disk manager. I started using Birdwell's utilities last night and didn't seem to have any problems at all.
On another note, I noticed that the keyboard and joystick routines don't seem to be quite as smooth as they used to be. For example joystick response on cartridge games seems to be a little jerkey (not drastic, but noticeable), could that have something to do with the changes you said you were going to make to the interrupt routines?
And finally, I'd like to ask for a Christmas present

, could it be possible to request an emulation of the P-Gram card? It is the one last piece of hardware I used to have for my TI that I really miss.
Thanks for all your prompt responses and I will keep farting around until I can give you a definitive answer as to how to reproduce the HD troubles I seem to be having. Like I said before, I think it's just something stupid that I am doing, (or did in the past when I originally set up the drive image).
A very Merry Christmas to you and all the developers of MAME/MESS.
Dave