If you mean "Can I restore Windows 98 on C drive using Windows XP System
restore?" NO. Windows XP System Restore is only concerned with Windows XP
components/files that might be installed on the C drive. If you could boot
into Windows 98, and opt to shut down and restart into DOS command prompt,
maybe you could type: scanreg/restore
press ENTER, then select a registry date prior to the problem.
If that doesn't work with a dual boot, maybe you could try booting with a
Windows 98 startup/boot disk (floppy) switch from the prompt from A: to C:
and try scanreg/restore from there. If you don't have a Windows 98
Startup/boot floppy, you can download one from
http://www.bootdisk.com