Currently, I'm using a USB stick, and I had syslinux on it, but when I would boot a DOS image with memdisk, it would hang. With DFT with PC DOS and virtually any image with FreeDOS. I tried the new FreeDOS image, but it did not help. (I got a new Invalid OpCode instead of hanging at INIT.)
In any case, Grub4Dos is great. Here's what you need to boot a floppy (or even ISO image, but not all ISO images work currently.)
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title Partition magic 8.05 find --set-root /images/pmagic8.ima map --mem /images/pmagic8.ima (fd0) map --hook chainloader (fd0)+1 rootnoverify (fd0) boot
I still have to rename all the menus for Grub4Dos from syslinux, but it would be great if someone did this officially at the UBCD project. I'd be happy to help in any way.