It' more convenient to use a Windows 98 startup disk: http://www.svrops.com/svrops/dwnlddisk.htm
Scroll down the list and download "Windows 98 boot disk with CD-ROM support". Use fdisk and format to prepare your hard drive for installation.
Note: You need a windows machine to create the boot floppy.

Alternative suggestion:
Code:
sudo qtparted
Select FAT32 to format hda1 and make boot partition active (boot flag).