Hi Ken, and welcome to the forum.
I can't help with the software, but I had a similar issue just recently when migrating over to win7. It is very unlikely you will be able to use a USB-stick for the license transfer as any good self respecting programmer (I have been programming since 1976) will do some tricky stuff with the actual sectors and sector counts or numbering on the floppy.
They will do that so you cannot make copies of the license floppy halfway through the transfer process. So, I got a copy of MSoft's Virtual-PC 2007 (VPC) and installed that. It said I couldn't or shouldn't install for my version if win7, but I ignored that and it installed OK. I then installed w2000-pro from an old long dead PC. I always keep the OS-CDs and hard drives just in case there is some data on them I find I need.
I bought a USB-3.5" drive and then installed the Licensed software. It was all handled very simply and smoothly via VPC and took about an hour, total.
Now, I shut down VPC with the "Save" option while the Licensed software is still running. I have it start full-screen and life goes on smoothly with VPC seemingly not involved.
More ways than one to skin a rabbit...