Well, it seems as if the bootfloppy issue may have been resolved. I had the idea o make a bootloader floppy rather than use a kernel boot floppy. The idea is currently used in alextreme's morphix distribution. (www.morphix.org)

As he stated above, the distro has a 2.88mb floppy image, and I was looking to install his light distro onto a pentium 266 that did not support booting off of cd. This floppy fixed the prob!

Good Luck!!!