Thanks for all the feedback, I tried RS and DS but Windows XP can't read the floppy disk (I have A & B set to 5 1/2 drive in BIOS).
Edit:
It seems I'm making progress, the same jumper settings partially work on the 486. The drive now can format (with very weird clicking sound), but it gives General Failure for reading (after formatting the same disk)
Edit2:
The "General Failure" error was causing by unrecognized disk format, after reformatting with DOS the drive works flawlessly. Pictured is correct jumper settings. Also found a good tool for testing FDC.
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