This has been answered many times...The kernel image is now too large to fit on a floppy and therefore it is not possible to make a boot or rescue floppy.
There is a boot image on the install disk that will allow you to make a rescue boot CD.
Sorry I called myself looking as well as doing a search, perhaps my query was not correct in the searches I did. Please excuse the error.
Perhaps I should ask it like this, If I boot from the 6.50 boot floppy, install 6.50 then upgrade to 7.0 will this work?