Welcome to LQ.
1: On The Linux Documentation Project
there's a HOWTO somewhere called something like 'From startup to bash prompt' which takes you through all the processes and stuff. Can be quite heavy going, though.
2: Again, from the above link, there's a HOWTO on hardware and naming/numbering schemes.
3: You can make another user that has (almost?) all the priveledges of root, but I don't think you can actually remove the user 'root' because it is used to run services on startup, or something.
4: There are many, many, many bare-bones Linux 'distros' around. The favourite by many has got to be Tom's RTBT
- but it's not the only one. Check out Ibiblio
's Linux distro list.
5: Err, not sure. Is it a valid device (i.e. is there actually a device attached to 2ndry Master?), and does it have a filesystem? It it's a ZIP drive, you'll need to have 'hdc=ide-floppy' in tje append section of your lilo.conf
6: Not sure, but could be a bad floppy. Personally I don't mount floppies (unless they're ext2, which is very few), I use the mtools to access Win/DOS floppies.
Hope this helps.