Huh? You didn't indicate how the Classic reacts to the 7.0.1. The most common problem is whatever application you used inside Basillisk II did not encode the disk as a startup disk. Assuming you did compensate for that, Where are you getting the complete copy of the 7.0.1? If you made it with the floppy images, then it may not include the enablers for the Classic II. If you are trying to use the System Tools floppy as the startup system from a CD-ROM, that may also not be supported because it does not contain the resources necessary to support booting from a CD-ROM. Lots of variables here.