Aright to answer most of your questions:
I didn't mess up my dads laptop, HE messed up his own laptop, I just have to pay the price of constantly keeping it clean.
Nothing freezes at all, it'll boot into windows just fine, but when I'm at the command prompt and try C: or CD C: or Format C: it says invalid disk. The HD's are also noticed in the BIOS of course since I can boot into it.
Yes I got the setup files from microsofts site. You download a single .exe and when you click it, it begins the setup process and asks you to specify which drive you want the files (A:\) and then to insert the floppy, it copies files, asks for next floppy and so on.
It seems that it's a case of needing to redo the disks and/or better disks because these are some rather old floppies.