FWIW I've got a working PIII/3c905b/terayon setup. My only initial problem with it was dyslexia: 509 is not the same as 905! IOW, you need to use the right driver, which in my case means
alias eth0 3c59x in /etc/modutils/aliases. Before that I tried two different NICs to no avail, which leads me to believe NICs may be inherently flaky. So maybe try another one (I convinced my local h/w vendor to lend me this one, slightly used, and I ended up buying it). -chris