So, that didn't work eh?
For your win98 related problem, why bother doing ' sys c: ' for? Use the 98boot disc; format the drive and run windows setup, windows installs fine, the drive becomes bootable regardless.
Hope any of that helps.
BTW, some MBs have problems with booting from cd and HD. Try to disable the HD from the boot sequence altogether, and see if that works, after the install you just have to enable the HD back to boot. (this is a stupid problem, i know
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