Two attempts to capture the disk images:

Attempt 1: Using IMD, SSDD, Full Analyis, Keep Bad Sectors
Results: 0:0 is 18 sectors of 256k on both disks, and both read in a real Model 4, untested on a Model III at this time.

Disk 1: Network III Operating System for Model III Hard Disk with LDOS
Image had issues with Track 31, Sector 8 (Bad) and shows deleted data on track 20. 
720 Sectors, 131 Compressed, 18 Deleted, 1 Bad

Disk 2: 
Image captured with zero errors using IMD, and is "TRSNET32.IMD"
720 Sectors, 5 Compressed, 252 Deleted

Attempt 2: Using CopyCat on a Real Model 4 Disk System, copying from the actual source disks to a Gotek empty 180k SSDD HFE, Thank you Patrick of TTR!

Steps taken to test:

Booted a Model 4 in LDOS (Model III Mode) using the FreHD, and with Gotek as Drive 1 selected "Disk 1: Network III Operating System for Model III Hard Disk with LDOS"
Once the OS loaded, start "HOST.CMD" at the promt, and the program started to the point it was listening for student stations.

Using IMD, created a phyiscal diskette from the "TRSNET32.IMD" image, and booted the real Model 4 into the Model III Network 3 Student OS Version 2.1.4

EOL