You have to put the floppy disk in your computer (there's a floppy drive in the middle of the PC tower) and then go to the Viewer tab on the PC. Click each block of data and move it to the buffer. Then, put a zip disk in your zip drive (on top of the PC tower) and then go to the Viewer tab again and click Move to put each block of data onto the zip disk. Send the zip disk in, not the floppy.
Viewing post in 0.90 Server Reports with my Kerfur O
Kerfur seems to be a bit buggy in this update. I haven't had the same issue, but my Kerfur-O has gotten stuck in a lot of places that it didn't in previous updates (under satellite dish stairs, right next to the river, etc.), and when I get Kerfur unstuck they just start the entire report process over again or worse, they cancel it and the floppy disk is just gone.
Hope these issues get ironed out.