Thanks for your reply. I figured the internal HD was dead (it seemed like it died the first time I turned-on the EmaxHD after buying it).
I made some small progress. It's not saying "loading software" anymore.
I wasn't sure what version was on the floppies, so today I used EMX to format a floppy with the EmaxHD 1.1 OS (using Win98, booted into DOS 7), and when I load the DD floppy in the EmaxHD it now says "Disk not formatted" and makes an intermittent read/access noise (normal floppy noise) on both the original & the SONY floppy drive. At least it's doing something now. I then tried formatting the disk with the regular Emax 3.2 OS using EMX in DOS 7, and the disk is still giving the error "Disk not formatted" when I attempt to load it in the EmaxHD. My other DD disks that load in my regular Emax are not loading either (they now give "Disk not formatted").
I saw that EmaxUtil can only run in DOS 6.22 or earlier (for the SE upgrade disk), but I'm assuming EMX can run under DOS 7 as
this url describes: http://www3.telus.net/public/a4a91380/emaxfiles3.htm.