Unlike Windows 98/Me, Windows 2000 and Windows XP have partitioning tools built-into the setup program. Therefore, you can perform an upgrade over an existing Windows 98 operating system. You can also select a different partition to install on. You can also delete partitions and allocate unpartitioned space. Unfortunately, what it cannot do is split an existing partition while saving existing data (basically, shrink the partition).
Unfortunately the only program that I'm aware of that can shrink an existing partition while keeping existing data is PowerQuest's PartitionMagic. I'm sure there are others out there - just none that I have ever used. Check download.com as I'm sure there are a few that offer free trials and such. Even then, I would make sure I was using the DOS version of PartitionMagic as it's not too great to play around with partitions while inside Windows even if you're not dealing with your System drive. There are too many things that can go wrong.
In any case, back on track. Unfortunately, the only suggestion I have without purchasing PartitionMagic is to back up important Windows98 files to external media. Then, Windows 2000 Setup can be used to partition the drive. If your friend really wants a copy of Win98 on their system, use fdisk to partition instead, then install Win98 and then Win2000. Otherwise, just use Windows 2000 to partition the drive and install.
As a last note, I highly highly discourage installing a Win2k upgrade over an existing Win98. Results would be a highly unstable OS.
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The Queen of DaniWeb
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