you'll need a stack of floppies for this sort of thing.
void main told me two different ways to do what you are asking.
the first way is to use 'split' to split up your original file on your 'big' machine, then use 'cat' to concatenate the file back together again on your 'little' machine. This won't be any use if you are using DOS though. what you need to do is create c:/baslinux on your little machine, then unzip your 2MB file on your big machine and stick the files onto two floppies. the largest file will take up one floppy, and the other files will all go on another one. copy all those files into c:/baslinux on the little machine and away you go. You now cd into the baslinux directory, execute 'boot.bat' and you are running linux. You then need to mount a floppy that contains bas2hd.tgz, then unzip the bas2hd file somewhere, then mount /dev/hda2 onto /hd (and you will already have used linux fdisk in basiclinux to make partition on /dev/hda2, and then you will have done 'mke2fs /dev/hda2' as well, it's all in the readmes!), now cd into the directory where bas2hd is and run 'Go' to install to your hard drive.