I'm not sure how far you've gotten since saturday, but it sound to me like you are almost there.  I have set up a system to boot Linux from a flash.  >From your descriptions, I believe you are on the right track.  Before jumping to Linux at 0x1000 for zImages and 0x10000 for bzImages you have to have the system set up the same way a standard POST would have.  That is, all of the peripherals need to be active and any machine dependant initializations need to have occured.  Finally you need to put the processor into a quasi protected mode (I've heard it called unreal mode but I'm not sure if there is an official name).  Basically this means you need to set up a GDT which alows access to all memory.  And finally you need to jump to the Linix kernel with a far jump using the 32 bit address override.

The code which linux loads ont a floppy to do just this stuff is in the file kernel/arch/i386/boot/setup.S.  It has a lot of moving the kernel code which I believe you've already got.  But then it does some setup stuff (and explains it better than I can) that you need.

Once you've got this stuff I think you shold be able to boot the linux image you've loaded. :)

Let me know how it goes and good luck!
        Gary