I suggest that you use PM to create a number of separate partitions with an eye to the future:
c:\ - current system (no more than 2GB
d:\ - data (perhaps 500 Mb, but probably less
e:\ - programs (up to 4 Gb)
f:\ - perhaps a games partition or a 2nd programs
then, up the other end
g:\ - a copy of your old system before you format the C;\ drive - just in case
h:\ - a copy of your new system as soon as its complete - then next time, your clean system is only a minute away.
I hyave run this system on 98Se for as long as I can remember - an total re-inbstallations only occur when I replace the mobo.