That USB floppy drive will probably work great. I've used a lot of them on 10.5.X machines and they've all worked. Disks usually come preformatted as FAT12 aka MS-DOS, IBM, PC. You should format them as Mac floppies before using them to transfer applications, installers, self extracting archives, etc. as the resource fork of the files won't copy on a DOS floppy. You can initialize/format them in the Color Classic or with the PowerBook.