The complete System 7.5.3 can actually be downloaded directly from Apple via the Older Software Downloads page: http://www.info.apple.com/support/oldersoftwarelist.html .
Click on the System Software Downloads link. Locate the files
System_7.5_Version_7.5.3/System_7.5.3_01of19.smi.bin
System_7.5_Version_7.5.3/System_7.5.3_02of19.part.bin
System_7.5_Version_7.5.3/System_7.5.3_03of19.part.bin
etc to
System_7.5_Version_7.5.3/System_7.5.3_19of19.part.bin
Please note that Disk Copy is not used in this case. Each download is floppy-sized, but this is only to make it possible to copy the files onto 1.44 MB diskettes for transfers. Alternatively, if the existing system folder has the necessary CD-ROM helper files, it is possible to burn a CD-R (at a low speed) with all nineteen files on a modern computer (Mac or PC) in an ISO format. That CD should then appear on the Desktop on the Power Macintosh 7200/120. Keep the MacBinary (.bin) encoding until on the receiving Mac.
The idea is to bring all files over to the hard disk of the Power Macintosh 7200/120. Once there, use an appropriate version of StuffIt Expander to decode the MacBinary (.bin). Place the nineteen decoded files (one .smi and eighteen .part) in a common folder. Double-clicking on the first file (the .smi) will mount the entire disk image. The installer can be found inside the mounted image.
If you do not have an early version of StuffIt Expander for Macintosh: With access to a Windows PC (capable of running a DOS program) with a floppy drive, you may want to try the following. Prepare an empty PC-formatted 1.44 MB diskette via FORMAT A: in DOS or the "full" formatting option under Windows. Download the MACDISK.EXE file from http://rrzs42.uni-regensburg.de/Macintosh/files/macftp.html . Run the MACDISK.EXE (DOS) program on the Windows PC. Follow the instructions on screen. The result will be a Mac-formatted (sic!) floppy that can be used on the Mac. This floppy contains a StuffIt Expander installer. Once installed, drag downloaded .bin files onto the StuffIt Expander program icon to decode them.
Also, if you need a bootable floppy (good idea), a Disk Tools PPC disk image file can be downloaded from Apple: http://download.info.apple.com/Apple_Support_Area/Apple_Software_Updates/English -North_American/Macintosh/System/Mac_OS_8.1_Update/Disk_Tools_PPC.img.bin .
In this case, Disk Copy 6.3.3 (the Make a Floppy command under the Utilities menu) is used to create a properly sector-copied floppy: http://download.info.apple.com/Apple_Support_Area/Apple_Software_Updates/English -North_American/Macintosh/Utilities/Disk_Copy/Disk_Copy_6.3.3.smi.bin .
Jan