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When you boot from the DOS floppy, you run FDISK and then create a valid PRIMARY partition on the drive. Then you set the partition as "active". Then you exit FDISK and must reboot the system with the boot floppy. Now you run FORMAT to actually format the partition you just created. If you use the command:
FORMAT C: /S
you will get a bootable copy of DOS on the disk. Otherwise, after FORMAT, you can use the command:
SYS C:
to put a copy of DOS on the drive. Now the system should boot from the hard drive.