|If you have a Toshiba laptop, why did you list your specs as a Dell Optiplex 960?|
And why are you using "win98 dos" to format the HDD? Win98 can only format using the FAT32 file system. You need to format using NTFS, plus you probably have a SATA HDD.
Create the Ultimate Boot CD, boot off it, then use one of the HDD diagnostics programs.
If the HDD checks out, use one of the other programs to properly partition & format the HDD. Remember to format using NTFS.