I'm running 4.26 with SP1. I'm not sure that drives showing as SCSI is actually a problem. Initially, I like others had problems with my CD burner, but this was fixed by downloading the latest (quite recent) update to Easy CD Creator (4.03) and Direct CD (3.03).
I wouldn't claim that 4.26 busmasters are completely stable though.
I think that there are two problems with Win2K and ATA-100 (although I'm open to correction). Firstly, it doesn't recognise a UDMA-5 drive. Secondly, after installing the hot fix that corrects this (which is consolidated into SP2), you need another fix to be able to boot your system rather than re-installing Win2K from scratch (although the recovery console may get around this - I haven't verified it yet).