Thanks for the replies:
shifuimam: It's possible drive may have partially failed. The symptons are that it goes through a startup sequence whenever the G3 Tower is turned on (LED turns on, motor spins, noises, etc). And when you insert a known working zip disk it also spins and lights up the LED for a bit, but never shows up in OSX. So I was hoping it was just a config and/or driver problem. It was originally missing the IDE jumper on back and I only had enough time to install a spare jumper and set it to slave. The CD-ROM drive shares the same IDE cable and is set to master. If I had more time I would've swapped them around and made the Zip master and the CD slave to see if that would get it recognized. The computer has a fully updated OSX Panther install. But I'm not sure if that includes a driver for ATA Zip drives.
himself: When I insert a known working zip 100 disk, the drive lights and the disk spins. But nothing ever shows up on the Finder/desktop. This same zip disk works fine if I connect an external USB Zip 100 drive to this Tower. With the internal drive, the only way to eject the disk is to remove the plastic blue drive cover (easy enough) and push the round Zip eject button. There is also a small pin hole in cover that looks like it should line up with an emergency eject in the Zip drive. But there is no such hole in the front of the Zip drive. I suspect this may not be the original Zip drive that Apple installed in this tower - which seems likely given the age.