Pegasus gives excellent advice as always.
But you didn't mention why you want to reinstall W98. I suspect you did
an upgrade from W98 to W2k hoping to avoid reinstalling your apps and
settings. Upgrades, however, are iffy and if not perfectly successful
result in prolonged and very frustrating headaches. Slight registry
corruptions and the like that weren't noticeable in W98 may be
propagated into the new W2k to disastrous effect.
Given the fix you're in, you might consider a clean install of W2k.
You've got to reinstall everything anyway, and W2k is a much more stable
system than W98 in the long run, including the much more robust NTFS
file system. One note: mainboard and device drivers written for W98
don't work with W2k; that might be part of whatever problems you're
having. You must be sure, on an older system and with older devices,
that the stringent W2k requirements are met. This may involve
downloading new W2k-specific drivers from various manufacturers - if
they exist. IMHO it's well worth the trouble.
A quick and dirty pass at this stringent requirements determination can
be done right from the W2k CD, by running:
[CD]:\i386\winnt32.exe /checkupgradeonly
This will not start an install. Instead, the winnt32 installer will scan
the hardware and software and report potential problems, including some
suggestions. The 16-bit winnt.exe installer does not have this feature.