Hi drwalkdw, welcome to DANIWEB Forum. The first thing I would ask, before going any further, do you have the Win98 install CD? If it were my computer, I would zero fill it first, but you may not have to, as it is a time consuming operation. I use this program to zero fill:
http://dban.sourceforge.net/
If you suspect your bootdisk is bad, go here and download a new one:
http://www.bootdisk.com/
When you put the bootdisk, it should bootup to the A: prompt, at the A: prompt, enter fdisk. Once you get to the fdisk window, select option #4, and look at how many partitions you have on the hard drive.
Now, you want to delete all the partitions, and then create one DOS primary partition. If you get the partition set, put in your win98 CD, and leave the bootdisk in the floppy, then press escape, and reboot.
Now, it should ask if you want to start the computer with/without CD support, select with support, and press enter. Now, at the A: prompt, type in: format C:
After the format is complete, it should go back to the A: prompt, now enter: setup
Your win98 should now begin to install.