My suggestion to put your XP pro CD in the drive and reboot was because I would expect the XP pro to be a bootable CD.
At the re-boot it should ask you to press any key if you want to boot from the CD.(your bios needs to be setup to boot from CD first then Hard Drive )
Now at this point you are into the computer below the XP operating system and you should not have any trouble formatting your E: drive or any other drive but don't forget you are about to wipe your operating system away once you format .
Regarding NTFS wouldn't it be better to format your drive as FAT 32 and get away from NTFS particularly if you want to dual boot with WIN 98
You can break your hard drive up in to at least four primary partitions before you install an operating system if you want to and usually most experts seem to reccommend installing win 98 first on the first partition and then XP.
I experimented with this a few months back and the description would be too lengthy to post but a detailed description may be found here
http://www.duxcw.com/digest/Howto/softw ... index.html
My short version is here but you really need to spend a couple of days reading this up
And you need to have a good win 98 boot disk ready that will let you SEE/access your CD rom drive.
The above link tells you what you want on the boot disk and it should include smartdrv.exe
It also helps to work with just one hard drive plugged in as the master until you are finished with the win98 xp install. It avoids uneccessary confusion of drive letters.
1.) Get rid of all your partitions on the target drive. Try and download and use your drive manufacturers utilities to do it if it is a drive over 30 gb because fdisk is not too happy with hard-drives over 30 gb.
2.) Format the whole drive as fat 32
3.}create new partitions lets say three to start with . One for win98 one for xp and one for storage and set the size of each partion. Win 98 about 5gb and xp abou 10gb ??
4.)Format each partion and GIVE THEM A NAME
5.)Make folders c:\windows\options\cabs as instucted on the above link and copy everything in Win98 into the cabs folder.
6.)run setup /ie from the cabs folder. This will install win 98 onto drive c:
7.)Win 98 is installed and you can now install xp in different ways onto the second partiton which will be D:
Either from the xp pro bootable cd itself which will take the show over at boot or from a win98 floppy in A; drive . If you use the floppy in the A:\ drive you run the command smartdrv.exe followed by D:\i386\winnt.exe where d: is your cd rom drive with the xp cd on it.This will start the XP setup and copy setup files from the XP CD to your hard drive.
AAAAAAAAAAAH why did I start trying to write this I will be old before I finish.
Now important points WIN XP usually takes over now because it can see win 98 is there and you should finish up about an hour later when you boot up with the option to boot into XP or Win 98 from an XP type bootscreen.
There are utilities to create multiple operating systems and multiple primary partions and I tried several of them. One in particular is absolutely fantastic called BOOTITNG
from here http://www.terabyteunlimited.com/
This program will go on a floppy disk and puts norton ghost , Acronis O/S selector and Partition Magic to shame.I would reccommend installing bootitng immediately after you put win98 in and before you put XP in. By doing this it will hide Win 98 partion from XP and vice versa. Also by putting bootitng in you can create up to 200 primary partitons and add further operating systems with ease. resize partions, copy partions , move partions , delete partions, format partions , boot from 2 hard drives , boot several operating sysytems from 2 hard drives.... I tried this program and I can really vouch for it
If I am not too late it would not be a bad idea to download the demo and experiment with it before you start
Size of the demo program is only about 1.4 megabyte and I think it is fully operational