SUCCESS at Last!!!! What a pain in the A$$
Turns out this was a case of a little knowledge can be dangerous. My Celeron 400MHz also has an AMI BIOS but the syntax is vastly different from the current AMI BIOS. So while I thought I had the floppy activated, I did not. The two BIOS's start the same: Std CMOS Features and Advanced BIOS Features.
In the 1st are 5 fields, the 1st four of which are non-changeable reporting fields [Primary/Secondary Master/Slave] the 5th field looks the same and says floppy not installed. Turns out this is a changeable field to activate the floppy and the default was not installed.
In Advanced BIOS Features there was a field: Seek Floppy [Enable/Disable] I thought this field activated the floppy in BIOS. I have no idea now what this field does.
It get better or worse, ie the saga continues:
You cannot have PATA hard drives present while installing windows or the BIOS or Window? will label the 1st PATA HD as C: and Windows will get lost on its many reboots.
Bottom line, SATA will have to wait for Longhorn, just like USB needed XP.
Thanks to all who posted.