I really would advise against lying to the kernel about your memory, because I think the kernel would get really pissed when it ran out!
Better to try the text install. You should be able to boot the floppy and at the first prompt hit <F1> then type text enter. You may not even have to hit <F1>, but that just gives you a little more information.
That is all there is to it. The install is the same but not as flashy and purty as the GUI install.