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Best thing to do is to boot from the XP CD.
When you do hit Enter to install; then F8 to agree to the EULA.
NExt it will scan your computer for previous Windows installations, this only happens if you have the Upgrade version of XP. If you do, it will ask for a previous disk, in your case 98. Put the 98 disk in and continue.
On the next screen you can delet and make partitions.
On the next screen you can format them; and it will then ask you for the XP disk, and format and install XP.
If you have any problems after that, it usually points to incompatible hardware.
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