|OK, the drive is certainly compatible with the computer.|
As I mentioned above, verify the bios is seeing the drive. It'll show on the posting screen, bios setup page or both. If it doesn't then either the drive or its cable is bad or something isn't enabled in cmos. Verify the boot order--CDROM then hard drive.
When you're sure the bios is seeing the drive, boot up with the cd and choose to start up with or without cdrom support--it doesn't matter as yet.
Then at the dos prompt type FDISK and enter. Answer Y to large disk support. Probably go ahead and choose option 3 and delete all the existing partitions. Then, back at the main menu, choose option 1 and create a new partition. For convience choose to use all the space in a single partition.
When it's done exit FDISK and reboot from the cd again. This time choose 'cdrom support'. (Well, maybe it doesn't matter since you're booting from the cd). Anyway. at the dos prompt type FORMAT C: and enter.
When it's done type SETUP and enter. That should start the installation.
During the installation 98 will have the PC reboot a couple of times. You should get the 'boot from cd, boot from hard drive' option. Choose to boot from the hard drive. The only time you boot from the cd is when yoiu start the installation.
Real men don't use AntiVirus; they just reformat