I tested it this morning when I came into work and all worked well.
While in single player mode, go to save your game.
Lets say you save the game as "The Beginning".
You'll notice in My Documents\DungeonSiege\Save folder, there will be a "Kahn (gametime) - The Beginning.dssave" file.
Just grab that along with your Kahn.dsparty and Kahn.dsparty.bak file, winzip it, put it to floppy and out the door you go
I was able to get one save file game plus the other 2 files to fit on a floppy (winziped).
note: obviously Kahn will be substituted with your player name.
happy hunting,
Kahn