Yes you can, but your system will run much better doing a clean install. In fact, I would zero out the drive, fdisk, and had xp format the disk to NTFS. What's wrong with your burner? You would loose everything installing XP over 98 anyway.
Do an upgrade to XP, do not choose new installation. It should run good enough to atleast burn cd's to save your data. Right click on all the files you want to save in xp & send to your cd drive.Do that if your nero or other burning program doesn't work.
After you save everything i'd do a clean install. You will get the best results by deleting the partitions, repartition as a fat32 & format, then when installing xp choose new installation & convert to ntfs. After this 2nd install, install all your software over again & then run a defrag. It is also a good idea to bump up the virtual memory to like 4000.