If you have a Linux distro and you have 1.44MB System 7.0.1 disk images, you can use the following command to image them to a floppy:
Make sure that /dev/floppy is your floppy drive. It seems to be relevant to the distro you use. The distro I made disks with used /dev/floppy, however another distro I've used once had /dev/fd0 as the floppy drive. Do a "ls" (without double quotes) in the /dev folder to see all the devices in order to get the correct name for the floppy drive.
Code:
dd if=DiskImage.image of=/dev/floppy bs=84 skip=1