Wozniak's design for the disk drive controller is said to have been groundbreaking for using just a handful of chips while most others needed dozens.
(Credit: James Martin/CNET)

Bricklin said Woz's controller was "wonderful," while Felsenstein marveled at its "elegance." Damer called it "masterful." And surely Apple's financial people were happy, because the simple design meant profit margins would be much higher than those on competitors' drives.

But no matter how great its disk controller was, Apple had no DOS. Or any way to build one of its own. "They looked around Apple," Damer said, "and no one could write a DOS."

Wozniak's options were few. On the one hand, he told CNET, there were no existing disk operating systems for the 6502 chip. And though the Apple II did have a mini-DOS built into its ROM that could redirect input and output streams to any slot by manual or program command, Wozniak wanted more.

One option was CP/M, a popular OS at the time. But it was known to be clunky, and though Wozniak said he talked to CP/M's creator, Gary Kildall, about operating systems, "I was looking for something easier to use."

Although he knew little about operating systems, Wozniak is confident he could have built a good one. But his co-founder couldn't wait. "Steve Jobs, who didn't have patience for a project that took more than a week, found [Shepardson Microsystems] and...they sounded eager and knowledgeable...so we hired them."

As then-Shepardson employee Paul Laughton remembers it, Wozniak came by one day saying Apple had a disk drive, but no DOS, and was wondering what to do. "I said, 'I know about operating systems.' And so he said, 'Cool, let's have you do it.'"

'Possibly the most important Apple documents in history'
On April 10, 1978, the contract was signed. For $13,000 -- $5,200 up front, and $7,800 on delivery, and no additional royalties -- Shepardson Microsystems would build Apple's first DOS -- and hand it over just 35 days later. "Amazing," said Damer, speaking about that deadline. "Can you imagine delivering an operating system in just 35 days today, with no tools and partially functional hardware? That truly was the greatest generation of programmers."

For its money, Apple would get a file manager, an interface for integer BASIC and Applesoft BASIC, and utilities that would allow disk backup, disk recovery, and file copying.

"I sat down and started writing," Laughton recalled. It "was written on punch cards. It was put into a minicomputer and assembled, and the output was paper-taped. Then we proceeded to debug it."

In the recently surfaced documents, which Laughton donated to the DigiBarn, is a wealth of information about the Apple DOS project. From contracts -- signed by both Wozniak and Jobs -- to design specs to page after page of schematics and code, this is a treasure trove of Silicon Valley and Apple history. Or, as Damer said he thought upon looking through the papers, "Oh my God, these are possibly the most important Apple documents in history."

"The difference between cassette and disk systems was the difference between hobbyist devices and a computer. You couldn't have expected, say, VisiCalc, to run on a cassette system."
--Lee Felsenstein, the creator of the Osborne I

One of the fun parts about reading through the documents is seeing pages filled with Wozniak's own writing. The project, after all, was based on specs Apple's legendary co-founder gave Laughton for how to create a boot disk. Among the treats -- for those who can appreciate such things -- is Wozniak's hand-drawn diagram for his highly regarded floppy disk controller.

The margins of the source code also have a series of notes explaining what's going on that are like catnip for true Apple geeks. Looking over the documents, and seeing a comment about "Must not cross page boundary," Apple's sixth employee, Randy Wigginton, who worked closely with Shepardson Microsystems on the project, said, "I forgot how crossing a page boundary added an extra cycle on the 6502."

"The 6502 liked everything to be in neat 256-byte 'page boundaries,' Wigginton explained to CNET by e-mail. "When writing code that had to be rigorous about timing, you had to be careful about crossing a page boundary....[Otherwise] an extra cycle was consumed by the processor. That's why Woz has a note 'Must not cross page boundary' on his code."

For Laughton, who turns 69 this month, his essential role in one of Apple's most important projects was a career highlight. Even in 1978, he could tell Apple was a special company, particularly because he recognized the "genius of Wozniak in the design of the Apple II and the design of the disk drive interface card."

He's also had plenty of opportunities to revisit his contribution to Apple. "From time to time, it would come up in conversation and someone would say they had an Apple II, and I'd say I wrote the DOS," Laughton said. "They were like, 'Wow, did you make a lot of money," thinking I probably worked for Apple.

In fact, though, Laughton made about $35,000 a year working for Shepardson at the time. He knows how much he could have made on Apple stock if he'd worked directly for Wozniak and Jobs, but in 1978, Apple was just another startup, and Laughton enjoyed the steady work writing software for Shepardson's many clients.

Besides, he recalled, "I remember talking to Wozniak, and his salary was lower than mine."