Hmmmm i am not sure at all why it never worked, the directions were correct and the files the ones you needed..As for restoring your os i have never ahd restore discs so i do not know how they work. If you know anyone who ahs windows 98 or 98se it will be fine for you to install theres on your computer. Do not worry about piracy as M$ do not care about 98 plus it is impossible they would ever ever know so try and find a friend or relative who has a full 98 or 98se disc and format your hard drive and reinstall from there disc..
I believe you would need to ask someone else about how restore discs work, i could say yes go and do it andit may not work.
Do you know that you can buy a full legal windows 98se disc from www.ebay.co.uk
for about £15 so it may be worth you investing a few pound and get your own full disc that way any more problems you get will be no problem to fix.