ARRGGHHHH...
Ok, I'm still convinced this is something really simple in regards to the floppy error.
Please don't think I'm being partronising but have a quick look at the (very badly hand drawn) picture below & just confirm that it matches what you have.
The rear of the drive in the picture shows where Pin1 is in relation to the missing pin. If yours doesn't have a pin missing & no number markings, then assume pin 1 is nearest the power connector on the drive.
Double check the power connection to the drive as well.
[attachment=3453:attachment]
Also, check that the floppy drive is a standard 1.44MB drive (not a 2.88MB one)
Next, make sure the following settings are correct in the bios :
[Standard CMOS Features]
Floppy Drive A = 1.44MB 3.5"
Floppy Drive B = Not Installed
[Advanced Bios Features]
Floppy Drive Swap = disabled
Floppy Drive Seek = disabled
[PCI/PNP Configurations]
Clear NVRAM = Yes (NB, this setting will automatically revert back to No after the next reboot, which is fine)
[Integrated Peripherals]
Floppy Disk Controller = Auto or Enabled
Save any change & reboot.
Let me know what happens, including the exact error message if you get one.