|If you have a USB port you can get external USB connected floppy drives for as little as $40 or so, whatever that is in pounds.|
If your Win 98 (first edition) CD is OEM (which is always a full version), or a full retail version, it is bootable. Just set your bios to boot from the CD drive. You can Fdisk and Format the drive in the first part of Setup if you like.
If it is a retail Upgrade version, it is probably not bootable. There are ways to get around that, but you need a floppy drive, or a possibly custom made slipstreamed CD.
If you want to try repairing Windows, just run Setup from the CD, and install Windows in the SAME directory Windows was in previously - by default that's C:\Windows. That is called running Setup "overtop" - it will not delete anything on the drive you have added to it, but it will repair things Windows knows how to repair, and replace files that are missing or Windows found to be corrupted - but sometimes that isn't enough, and the files that are giving you problems may have been installed by other programs.
When you do run Setup, always load the drivers for your mboard, especially the chipset drivers, after Setup is finished.