So... xrbrevin, can you let me know if the Lazer Copier successfully loads with your drive? Likewise, try the Happy 7.1 disk diagnostics and see if you get a ROM test fail, and then try the Happy backup and see if that loads. Also listen/watch closey to the head seeking, and see if you observe it faster than a stock 1050. Might sound more like a higher pitched buzz instead of a grind when seeking multiple tracks. May give some clues if it's just a slightly modified happy ROM or something else...
Lazer to 1050 chip converter (does this rip disks to cartridge files?) generates an error - see pic. It gives the same outcome regardless of the position of the 3-position switch setting.
Happy 'enhancement' diagnostic generated a RAM error - see other pic. A reset then showed the drive to be unhappy. I cycled the drive power, reset the Atari and it became happy again.
Im puzzled because it is fully functional, has super fast read and writes and the stepper seek time is very short.