You might also need try this if your running a bootable CD:
Windows will create a "virtual" A drive. As a result, your cd drive, usually D: may now be E: Don't as me why..I'm not sure, but bootable CD's always seem to move the cd rom letter when creating a virtual drive.
After you have formatted and followed above directions:
-Start Computer w/ CD Rom Support
-Once all is done, you will be at the A: prompt:
-Find out where your windows cd is:
-Type E:, enter or D:, enter
-Type dir (you should see Win98, Setup, Fdisk, etc)
-Once you find out which drive letter is the windows CD:
-From the drive letter (e: or d

, Type:
1)cd win98 or CD win98_se (if you have win98se)
2)cd setup
3)setup
...and you should be on your way...good luck