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Unlike Windows XP/Vista., you don't have to boot from a Windows 98SE CD in order to install it. In fact, some Windows 98SE discs aren't bootable anyway.
Just boot from the startup floppy like you did, enabling CD-ROM support when prompted. When the A:> prompt appears on screen, put your Windows 98SE CD in the drive, give it time to spin up, then change from drive A: to drive E: simply by typing E: and pressing [Enter]
Command-Prompt should now read E:>
Now type setup and press [Enter]
Windows 98SE Setup should start to run.
One final word -- to ensure a trouble-free installation, make sure the target partition is totally empty of all files before attempting set up Windows on it.
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