David Schaub had some of the previously reported problems with Silverlining 5.8.1 and Mac OS 8 (especially the password protection problem). He writes: "The volumes would either not attempt to automatically mount (i.e., ask for the password) or would mount automatically without needing the password. I found a solution to this: All I did was enter the Silverlining application, hit 'set' to see the current password, and then update the changes for each volume." Immediately after doing this, he got a message that something might be wrong with the drive, due to the update. However, he restarted the computer and "everything now works properly with no obvious problems."
Update: Meanwhile, Jean-Claude Eischen received the following note from La Cie technical support: "The problem you are describing with Silverlining being unable to mount a password-protected volume is a problem that we are working to remedy with Silverlining 5.8.2, which we hope to have available soon."