I'll be getting some original installation floppies for system 7.0. Where can I find a procedure for reformatting the hd (currently running 7.5) and installing 7.0, or will the install disk step me through this?

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Don't feel obliged to perform a low level format from the Disk Tools floppy. Just running the "Erase" command in the Finder (which performs a high level format) will suffice if the hard disk is in good shape.

If you want to preserve stuff on the hard disk, boot from Disk Tools. Rename the System Folder and delete the items System and Finder. Software that has been installed previously may have placed components in the Extensions, Control Panels or Preferences that you may need.

Then reboot from the "Install 1" or similar floppy, and install following the on screen instructions.