Well NakaNaka, You know how you can bootup DOS off a floppy?
Once booted, you are running a small version of DOS, that can access the HDD, CDRom (If enabled) and do certain things.
For "Crack Rack" systems, you boot off a floppy, with a minimal OS, and the dnet client, because all we want the "Rack" to do is Crack Dnet.
It'll help, if that minimal OS has networking support so you don't need to worry about swapping floppies, and/or flushing the dnet client on another machine.
Most (I would think) are running a "Server" on that network, with a Dnet PProxy, acting as their own "Mini keyserver" for the "Rack" boxes to flush/fetch more blocks to.
The Dnet PProxy then passes those blocks onto Dnet or the "TA Round Robin Proxies".
No need for a HDD, unless maybe you were building a "Beowulf" system, but that's a whole other story.