Boot from the Win98 floppy. Use Fdisk to create a primary partition on your new hard drive. Create any extended partitions and logical drives required, format all partitions and reboot. Your new hard drive should be recognized and available for installation. I still think it advisable to install Win 98 first, and then XP so I'm not 100 per cent sure what you are attempting will actually work. You may poosibly need a third party boot loader.