XP probably formated the disk as NTFS, which 98 can not understand.
Fundamentally, you need to delete the partition, then re-create it.
If there is nothing valueable on the hard drive, use FDISK run form a DOS
boot floppy to first delete all paritions, then create one or more with
FAT32 format.
If there is somehting valueable somewhere on the hardrive, say for example,
on a second partition, get something like Partition Magic which can convert
from NTFS back to FAT32, without data lose, and which can act on single
partition. Then, a standard boot floppy can re-fromat, thus earasing
everthing on the XP partition.
You can get several excellent boot floppy, and the latest FDISK (for large
drives, meaning larger than 32 Gig) from
www.bootdisk.com.
However, bear in mind that 98 is getting fairly old, and may not support
super-large drives, such as those above 127 Gig. (The original XP did not,
so why should 98?) I also recall that 98 has a problem with more than 512
Meg of RAM, although I hink that MS has a fix. But, if the hardware is a
few years old, then 98 should work fine.