"Create" ? You don't speak of an emulator, do you ?
Well, put a HD floppy disk into you HD floppy drive. When the icon appears on the Workbench, click it once and choose "format disk" from the menu. Choose your options and click on format. When formatting is ready, you have a 1.7 MB non-bootable floppy disk.
Open a Shell window (choose "execute command" from the menu and enter "newshell"). Enter install df0: where df0 has to be replaced by the drive name of your HD floppy drive. Now you have a 1.7 MB bootable floppy disk.
Bye,
Thomas
