I'm sorry about my instructions. I haven't used msdos much. I should have told you to enter e:
first then cd \col\launch\floppy
As for ata66 support, Caldera's site has this page
that says openlinux 2.4 and before cannot use them for installation. You can use them after installation, but it requires you to recompile the kernel. Your version of linux is old. On their site they refer to it as a retired product. You should try to get a newer version of linux.
For what it's worth, I found this page
about using xcopy. Good luck.