Unless you have files you need to keep, what you do is first boot from the Disk Tools disk. Then run Apple HD SC setup. Erase the HDD. Restart (it should eject the floppy), now stick in the first Install disk. Install the System onto the HDD. Reboot when it asks.

Your computer should now boot up on its own without the need of a floppy. If it doesn't, there may be other issues (such as a bad hard disk drive.)