This article could help. It has procedures you may not have tried...
PUB2002: How to Use Pack and Go
http://support.microsoft.com/default.aspx?scid=kb;en-us;302938

Try dragging the contents to a folder on your hard drive, then unpack.
Freeware
http://www.majorgeeks.com/download2368.html

Before you try the below utility, copy the disk to another floppy or to your hard
drive.

In Windows, there is a built-in utility for checking floppy diskettes for errors.
This utility is called ScanDisk.
In Windows 95/98/Me/NT/2000/XP, go to "My Computer"
Insert the suspect diskette into the floppy drive.
Right-click on your floppy disk drive {usually called "3 1/2 Floppy (A:)}
From the selection list, select "Properties"
Click on the "Tools" tab
Under the Heading "Error Checking", click on "Check Now"
This will check the floppy diskette for errors.
In the box that pops up, check both options, "Automatically fix file system errors"
and "Scan for and attempt recovery of bad sectors"Click "OK"

The scan will commence. The utility will take several minutes to
thoroughly scan the disk, including a surface scan for physical problems or
imperfections on the surface of the disk.
Bear in mind that if bad sectors are found, the utility will attempt to recover them
and move the data to known good areas of the disk.

Sometimes this will result in the loss of data from the bad sectors, so your
recovered files may not be fully complete, so check your files carefully after using
this utility to see that they are complete.

After the scan completes, copy all files from the floppy disk to a temporary area on
your computer's hard disk. Check the files carefully for completeness, and fix as
necessary. If you must have your files on a floppy disk, copy the files to a new,
unused disk. Most data loss on floppy disks results from improper handling or
storage, and the multiple reuse of floppy diskettes. Floppy diskettes have a limited
life, and repeated read/write functions eventually affect the reliability of the
diskette. A disk with one bad sector will probably develop more errors with repeated
use, and should be discarded