You can of course dump all files from different disks into a single directory and mount that instead of the images, like the OP suggests. For installations that's easiest when it works (in absence of copy protection etc.) since you don't have to do anything every time the installer asks for the next disk, just press continue.

That sound like it could work BUT What program would I use to make a Floppy Disk Image?

You don't need any images, unless that's the original format how you got the content. Just use the mount command instead of imgmount. It supports the -t floppy or -t cdrom parameters as well, if needed at all.

I ran into this problem I few days ago, when I tried to install a multi-floppy game... since the install program looked at the volume labels I couldn't just copy the files to a floder and mouint it as a floppy.

In the end I used PCem plus a DOS installation to install the game, then transferred the installed files with WinImage.

DOSBox SVN has had the support for mounting multiple floppy images for a few years. Just one of the reasons why I've compiled my own DOSBox binary from the source.