@Amigaharry2

I forgot to give you thanks for your reply and advice. It worked perfectly.
I thought it was better to create a separate new thread, since it is more a general discussion topic, than Pagestream specific.

I came across my old and original installation of Pagestream 3.2 yesterday and I decided to also give it a try, since it worked very well with my previous Mac Mini G4 1.2Ghz.

It's working but it messed up my user-startup and now everytime I logon is asking me to assign volume Work:Pagestream3.

This is how my user-startup file looks like now, and IMPORTANT - This is all the content of my current user-startup, nothing more:

;BEGIN PageStream3
Assign PageStream3: "Work:PageStream3"
Assign SoftLogik: "PageStream3:SoftLogik"
Assign Fonts: "PageStream3:SoftLogik/Fonts" ADD
;END PageStream3
;BEGIN ARexx
sys:system/rexxmast >NIL:
;END ARexx

How to edit my user-startup so that it boots up straight to Ambient?

Everything in your user-startup looks ok, so the problem is that Pagestream3 directory is not on work disk.
Check that, also check that direcotry name is same as is in user-startup file.
Edit user-startup with text editor and correct path or name of the first assign, save and reboot.