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Try running the zero fill format utility that can be found or downloaded for free from your HD mfgs site. This will wipe out everything on your drive and make it "RAW" essentially your system will recognize this drive as fresh out of the box never been used. Then you can FDisk, create partitions etc and Format the drive(s), then try installing 98 fresh.
On another note I believe that if you have XP partitions that Fdisk has an option to remove non DOS partitions.
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