You can install any size of SCSI HD you have, Juzza.
Just, as Zetr0 already said, you can't use anything that is over 3.67Gb, even partially.
Best option is doing a little calculation when installing the drive: let the Amiga detect the drive geometry and then start to lower the number of cylinders detected.
Example: if a 9Gb drive shows 99 cylinders, lowering the declared number to 40 cylinders will show a 3.66Gb drive.
Of course, the leftover will not be used at all, but at least the drive will work no matter what.
Now, for your problem, I agree with Zetr0 again: you have a cable or termination problem. The SCA80 SCSI models often does not have built-in termination and even when they have, they don't like to be hooked to a chain with passive termination.
Then the only choice is grabbing a 50 female to 68 female gender changer and a 68 cable with a built-in terminator.
Then you hook this to the Amiga controller this way:
TERM---Amiga_controller (with gender changer)--Terminated_HD.
If in need for a picture I can take one from my A2000.