Someone correct me if Im wrong but isnt the highest capacity MSDOS supports 2.03GB? Last time I used My MSDOS 6 floppies to install my windows settup it reduced my 8GB to a 2.03, and before that it reduced my 3.02 to a 2.03. wich would make formatting really unwise on most hard disks (Unless offcourse im wrong

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Best way I can think of is to make a system floppy in windows before you start, reboot with it, install some CD-ROM drivers to it, and bingo, a bootable floppy with CDROM support.
Though obviously you only need to do that if your computer doesnt support booting from CD-ROM.