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Well, was there ANYTHING else installed besids 98 when you ran XP setup?
Try installing XP without putting 98 in first.
Boot from XP CD, you may have to go into your BIOS and set the first boot device to CD-Rom.
Then hit ENTER to install, F8 agree to EULA, then if its an upgrade XP disk it will ask you for the 98 CD; put it in.
Then delete the partition(s), hit ENTER to install, then chose FAT ot NTFS to format; it will then prompt for XP disk.
Then it will format, and then copy the installation files, then reboot and setup will continue.
If it fails this way, you have imcompatible hardware.
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