|If the cd isn't bootable (it may or may not be) then get boot disks with cd support for Win98.|
You don't have to make a floppy. Just use the floppy image as boot device. Also use CD or image of CD for install.
If it asks for a prior CD you may have to find or borrow a cd to get it to work.
I have seen many Win98SE disks that were bootable and were not upgrade cd's. Seems to me there were three versions of SE.
"Best Practices", Event viewer, host file, perfmon, antivirus, anti-spyware, Live CD's, backups, are in my top 10