|The best option|
Make an MS-DOS bootdisk, go to www.bootdisk.com and download the one entitled 'Windows 98 Custom bootdisk'.
Take out HD and connect to a desktop with a CD and floppy drive with an IDE to Laptop IDE converter. Disconnect your normal HD, and ensure the Laptop HD is the primary C: drive
Boot your MS-DOS floppy
It should load CD-ROM drivers
use fdisk to create a new partition (you want to create an MS-DOS primary partition). Then use format C: command to format the new partition.
Load smartdrive by typing smartdrv
change to the CD-ROM drive letter, and change to the I386 directory, e.g. D:\I386
When that stage has been completed, turn off the computer, and put the Laptop HD back in the laptop, and boot, and setup should start =]