My Floppy is internal, connceted to mobo as well and I have the omniflop driver installed just like you. But floppies in EMXP are not an issue for me. Only "Emax formatted" scsi hdd and cf cards exhibit the behavior I have described.
These are the 2 IDE flash drives I am using:
Addonics ADIDECFB - http://www.addonics.com/products/adidecf.php
Hexin Technology HXSP 2108P - http://www.soarland.com/Universal_40-pin_Male_IDE_To_CF_Card_Adapter-product-163.html
I only ever connect 1 at a time for testing purposes, it's always set as the secondary master, and BIOS is set to auto detect. Windows has no trouble assigning a drive letter if the format of the drive is something it can recognize (dos, fat, ntfs, etc.) If a disk shows up in disk management as RAW or Unknown I get a screen exactly like this: http://i.imgur.com/xEd4K8B.png
And every single Emax formatted SCSI drive and CF card I have put into both my Win XP & Win 7 machines reports the format as either raw or unknown, and without any drive letter.
- Jim