I am trying to get system 7.0.1 running on a group of floppy drive 800K Mac Plusses with 4MB of RAM.
I have had succes with "InitShare" under system 6 to have the boot floppies load all the INITs, cdevs, fonts, sounds etc from the server at startup. I seem to remember coming accross a similar INIT months ago that only worked with system 7 allowing you to put aliases in the boot system of INITs (and hopefully the finder) that pointed to files on the server.
I also had the idea that the bulk of system 7 could be put into a large INIT on the server which could be loaded at startup.