Win 98 eh? Going back in time a ways. My guess is that you are dealing with an older computer here, correct? Is the drive spinning the CD, i.e. can you hear it and see a light? If not, the CD-ROM drive is shot. If not, chances are that your W98 disk is corrupt, i.e. done.
I have one of those compaq lte 5400 and recently it crash the OS (98se) , and it is correct that it dose not recognize any bootable CD - so I took out the Hard drive from my compaq lte 5400 and connect it to IDE adapter which conver the 2.5 IDE to the 3.5 standerd IDE for desktop ( you can buy that adapter for $5 from any computer store ) and then I installed my 98se .. but just make sure that you wait only until all the windows and system files are copied and until it ask you for the first time the the PC need to be restarted , and at that point power off the PC ( focebly ) and reinstall the hard drive back to the Laptop , because you want to make sure that the hardware configration and done on the laptop it self.
I did that on mine and it works perfect ..Good luck