|"I was wondering if the floppy disk drive itself was bad."|
Quite possibly. If you're sure your floppies are bootable, then it's very possible the drive itself is at fault---though floppy disks also go bad. If you have (or know someone who has) another machine with a floppy drive, make another boot floppy on a freshly formatted disk (and make sure it had no bad sectors on it) by using the files (use 98bot10a.exe for Win98SE) here:
If no go, then it's a drive problem.
"Channeling the spirit of jboy..."