How about making a partition using the free disc space? (with a program like partition magic) I don't remember if winXP will allow or even give you the chance to install win98 on it tough, cause I remember formatting, install 98 then xp to have two OS as well on separate partition.
It was a pain indeed. So decided to stick with XP only and use DOSbox to play old stuff instead of having a win98 to run them
