Are you trying to use a CD-R, or a CD-RW on the WIn98 system? That make a huge difference. CD-RWs must be closed, or finalized, before they can be used on another PC, and a PC must have drivers installed to read a CD-RW.
I am using a CD-RW. I don't want to waste a CD-R on a one-time transfer. I can
use iit for a Win98 system disk, though. I'll check it at my next opportunity.