You'll hopefully get additional advice from others, but I recall the following from my experience:
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From W98 you can upgrade to XP Home or XP Pro but you have to install W98 first . You can try a direct install of XP in the hope that it'll ask for your W98 disk to be put into the drive for checking; I'm not sure that'll work but it's worth a try. I did it the long way round.
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If you take the direct route, set the HDD up as NTFS as there is no practical volume size limit for the C: drive. However if you have to go back to W98, you'll have to format a partition of 32GB or less for this purpose and consider to ocnvert up to NTFS later with the CMD: "convert C: /FS:NTFS"
3/
On the question of mixing XP Pro and XP Home for repair, no. They don't mix.
Suspishio
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i have had success with not even have to do a repair install of xp when changing a motherboard but only a couple of time ,same or similar motherboard chipset each time.
My suggestion to you would be to borrow a winxp home cd from a friend or co-worker! and try the repair install if you have too.
caperjack
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You are absolutely right. if you can avoid the pain, do. Two things to beware of in doing the XP Pro OEM from your laptop:
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Make sure you are online during the install so that appropriate drivers can be downloaded; OEM versions of Windows vary in their driver content.
2/
There is the potential worry of the Windows Activation Code.
Because of these issues, I focused on the W98 --> XP route.
Suspishio
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