I have win xp on my laptop. I would like to install win98se on an external harddrive so I can run some software that is not xp compatiable. Can I do this and if so how.

I'm *almost* positive that you will not be able to install that OS on an external drive. Some one please correct me if I am wrong.

in any dual boot situation, win98 must be on drive c: xp on drive d: the dual boot option will be setup by xp during its install and, to see the files on each os, both must be formatted fat32

Allow me to correct you..you can have 98 or Xp on any of the two drives. That being said, here is what you do. Install Xp on drive C then take it out of the computer. Install another hard drive and install 98. Whewhen youare done doing both hook up both drives to your maching one as the slave and the other the master. use Xp as the master is my recommendation. When done go to www.osloader.com download the program and install into Xp. This program will sniff oout any boot records and give you a display on which you would like to boot with at startup. if you have questions post here and i could help you.

you cannot boot from a USB drive.

Cost cash - but installing VMWare util would allow it quite easily (XP hosting '98 in a virtual-PC window). resolves the non-boot to a usb/external device issue... It does demand that the laptop be high enough spec. for VMWare... As I say - it costs... http://www.vmware.com And as post-#3 comments, either OS can be on either drive in a conventional dual-drive environment (i.e. drives physically installed 'in' the same PC - neither drive external). Only thing required is that the active Primary = fat16 or fat32; respective OS (system) files can go where you want them, in separate partitions/logical-drives, and be the preferred file formats accordingly. If either OS in the active Primary it has to fat32 formatted (even fat16 if the 2Gig limit can be accomodated)... Post-21665 #5 details dual-boot (single/dual-drives; an OS already installed or not) for '98/W2K; change W2K to XP and you have it; also adapts easily to W2K/XP dual-boot...