I have Windows XP professional upgrade, so I first have to install Windows 98 SE. The problem is that in it's initial stages of installation when it detects and configures plug and play devices it hangs up. After that when I reset and boot up it sticks at the Windows screen.
I have all the intergrated perihephials on the motherboard disabled. I also took out all my PCI cards and left only the Video card. I can't imange there would be any device conflicts. Could this be hanging up because Windows 98 SE doesn't agree with the Dual core cpu?
You don't have to install 98. Simply boot from the upgrade CD and start the installation process. At some point, it will prompt you to insert your previous version of Windows so that it can check you're eligible for the upgrade. Feed it the 98 CD, let it do it's thing, then you're good to go.
Besides, you want to format that drive as NTFS... so much better than FAT. Win 98 is nearing it's 10th birthday... which means new hardware support will be extremely limited if it's there at all.