VB P&D is a steaming pile of man biscuits. Use the Windows installer version 1.1. Available on the Windows 2000 readiness kit or download it from Microsoft.

This treats deployments as a project allowing you to control the content of the deployment. It allows you to determine what gets deployed and to where. Registry entries, desktop updates, quick launch bar updates are all available in the Windows installer.

I don't think your going to have any luck getting any size program to deploy on one floppy.