ATI 4.0 installed and Apple Guide not enabled = system crash?

Hong Nguyen writes: "If the new ATI Orion or Nexus 128 cards are installed (with the ATI 4.0 Universal software) and the Apple Guide extension is not enabled, the ATI Extension will not load, and the system will crash with the error 'Code Fragment can not be prepared.'" It happened on his Power Mac 8500 with Sonnet Crescendo 1.3.7 also installed.

Randall Shaw notes essentially the same problem with the ATI 4.0 Universal Installer that ships with the new Quake2 CD. He writes that "it installs a 'bad' ATI Extension that upon startup can cause the error 'Could not prepare code fragment.' This is due to Apple Guide not being enabled. This problem only exists on non-ATI128 machines (as the G3/BW's use the ATI Game Driver Installer 4.0 instead, which works fine). Apparently, ATI does now know of the problem, and are working on it, and will have that fixed before they release the installers on their web site."