Yes, you can update if you put the update files on the route of C: and run the update from the command prompt in safe mode. I'm assuming that the BIOS update file you intend to use is the unpackaged BIOS update version and not the hard drive version.

Whether or not this put your motherboard at risk all depends on your point of view as any BIOS flashing has an inherent failure rate.

Did you check your boot order in BIOS for the Floppy First?

I did, I checked the boot order prior to my failed attempts to boot from a floppy. What worked was to perform a shutdown, boot via a win98 boot disk, then pop in the BIOS floppy that I created from the Dell website, installation was smooth and trouble free.

I believe the culprit was 'restart'. When I perform a 'shutdown' then I'm able to successfully boot from a floppy. When I 'restart' I am unable to boot from a floppy.

Thanks to all that contributed to solving my problem.