Error 1781 disk 1 failure - solved
The system would not boot beyond the Compaq logo, and the Hard drive and floppy would not work. With hard drive removed it boots beyond the logo to Error 1781 disk 1 failure "invalid disk"
Remove floppy, hard drive, and start the system. It booted normally. Shut system down and re-install floppy, hard drive, and start the system. Floppy and hard drive works. Install Suse DVD choose and run repair option and fix the corrupted files. The system now works perfectly.
Compaq Armada E500, 1000 mhz, 256 MB Ram
Thanks for the responses