Copy the Win98 from the CD to the hard disk and install from there. Remember that installing Windows OS is not going to supply the needed machine drivers so get those on the hard disk prior to installing the OS. Said drivers for motherboard and more are on IBM.com.
I have an old IBM ThinkPad Laptop Type 2635 that came with Win 95. I was trying to install a wireless card and the system froze. Unable to do anything I erased everything and tried to install Win 98. It installs smoothly down to the last 3 min and then doesn't recognize the CD drive. Not being able to get the last files off the CD it needs, Win 98 doesn't work. How can I get the laptop to recognize that it still has a CD drive and get the files off that I need?