My idea was to boot from the startup disk, create a RAM disk of about 2 MB, copy the extras disk in, and reboot from the RAM disk. Yipee! My floppy drive is now free for running programs/saving data!

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Well that isn't going to work given that Macintosh clears the RAM disk at shut down.

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I am doing a warm restart ("Restart" from the special menu in System 7). It will boot from a RAM disk-I tested it with a little trick. I created a RAM disk and fooled it into blessing it by using one of the System Enablers as "Finder". It blessed and booted, although, of course, returned a finder error bomb.

I didn't think, of course, that my fooling would actually work, but it did show that the mac booted happily :b&w: from a RAM disk. Only trouble is I can't make it big enough. Will check the links posted.

The hard drive works occasionally

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You know the reason the hard disk doesn't work properly, but you refuse to do anything about it.

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I'm not going to waste my time doing something without knowing if it's going to work. Something which will work 100%-fine, but not wasting money on something which doesn't actually help in the end.