But it may mostly work in this particular case, assuming that the installer re-reads the size of the drive after you swapped SD cards, and expecting it to crash after it is done, since it cannot read the System, Finder, etc. files.
Or perhaps it is the case that no files were opened from the SD card because the System was booted from your SCSI drive. If that's the case, then there is a mystery why the external parallel drive did not show up with the newly created file (requiring you to boot with another SD card installed). Perhaps the ESProFile documentation mentions required specifics regarding file attributes or something like that, or perhaps there is a newer version of its firmware?
Yes, I have 2 ESProfiles (one internal one external) plus the BlueSCSI. MW starts from the internal and boots to the SCSI.
So I made and formatted a 200meg image today and had almost the same issue.
MW+II installer saw the External Profile and started the init of the raw blank file but I knew something was up because the green LED on the external profile just blinked in a steady pattern. After 3 hrs I gave up started the process again and this time I changed SD cards and the format worked fine.
This seems very odd to me.
I will try another run at it tomorrow.
Here is a DRAFT of the guide I am making (attached PDF)