I would say use DosBox / a Win98 virtual machine under XP and forget about installing 98 on the real hard drive.
There are a lot of potential issues you can run into installing Win98 on a computer with a more modern OS. For example, it must be installed on a primary partition, its partition must be close to the beginning of the hard disk, you may accidentally overwrite an existing partition because drive letters are different under DOS, you WILL definitely overwrite XP's boot-loader and will have to repair it, etc.