There is a whole bunch of stuff written on LEM about the 
preferred system  for these machines--7.6.1 or 8.1 or 8.6.   Based 
upon my limited knowledge of the 5400 and the 5500, I am guessing 
that the machines are so similar that your distinction is  a system 
issue.   Your 5500 works better because it has a better system.
        I am guessing that you should install 8.6 in all of 
them--isn't the upgrade free from Apple?
        I have put OS9 in a 5215 and a 5300 and my personal opinion 
is that it is faster and more solid than the systems 8*.   And as you 
know, the 5400 and 5500 are much superior systems to the infamous 
"road apple" 5200 and 5300--which had quadra motherboards.   So OS7 
would be much more advantageous to the 5300 and earlier systems--but 
not the later ones.  (contrary to the theme of LEM, sometimes 
software does get better).
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