Let me get this straight:
You took a hard drive with Win98 installed out of a @#$#@ Compaq
?
You then installed that drive in another computer and fired it up?
Was this the only hard drive in the Compaq?
Let's get everything not needed out of the way. Unplug the floppy drive and CD drive cables and power.
At bootup get into the Bios and make sure the boot order is set to Hard drive first. Start it up see if it boots from the hard drive.
If not, set up the floppy. Plug in the cables making sure on the pin 1 orientation of the ribbon cable.
Now set the Bios to floppy first and restart with a boot disk in. If the floppy does not function correctly, shut down, unplug the ribbon from the floppy, flip it, and plug it back in. Start it up again.