On the Developer CD, you are provided with a set of system software folders that you can do installations from. If you want to make a set of disks from these folders, do the following:
1) Format a floppy disk, and give it precisely the same name as the folder by selecting the folder, choosing "Copy" from the Edit menu (or command-C), selecting the title of the disk, and choosing "Paste" from the Edit menu (or command-V).
2) Open the folder and select all of the files (command-A).
3) Drag these files from the folder onto the floppy disk.
This will not create a disk with the exact same layout as the associated folder, but the installer will not care about this. The resulting disk set will correctly install from an already-booted (running) Macintosh.