In my little corner of the world, I've built an emulator
for the TRS-80 drives that does FM/MFM (SD/DD).  It connects
straight to the TRS-80 floppy cable and looks like a floppy
to the TRS-80.  It is loaded from the PC with an RS232
connection and a floppy image in DMK/JV1/3 formats.  The PC
software is smart enough to allow you to download a single
file to the emulator by automagically wrapping the file
in an appropriate OS.  All of the old TRS-80 OS's are supported,
and CP/M is in the works.
It works with the Model I & III/IV now.  I'm adding to the
firmware to do hard sectors so I can boot my H8 from it.  Over
time I want the box to be able to boot many of the old machines.
Next on the list after the H8 (which really covers many machines)
is the Apple ][.
I've got the plans up on the web at 
www.rothfus.com/SVD.  Note,
though, that the latest and greatest (including DD) isn't up
there yet.  Hopefully over Christmas I'll get the new stuff up
there.
Eric