Why not do it the way it's supposed to go? Leave the hdd in the laptop, then install W95 using the external floppy disc drive.

Recently I found an old 701 that apparently has a boot problem. Outer casing is rather scratched but I'm thinking of fixing / upgrading it. Does anyone have perhaps the floppy drive left, or even one of those 133 mhz motherboards? Who knows, with a pcmcia card it might even read usb sticks. Not that...