I don't want to foist linux upon you so i might as well try and help you install windows too.
As i remember it, a lot of the 760el's can't boot from cd, or the network for that matter - your best bet would be a windows 98 cd with a 98 boot disk - you should be able to boot from the external floppy drive no problem - when it boots you'll get 3 options - choose "boot with cdrom support" and you should get landed to a command prompt - navigate to the cdrom drive - not sure which one it will be but just try them sequentially - d: e: etc, when you find it you'll need to find the location of the "format" command - its been a while so i'm not sure which directory its in - a 98 cd isn't that big so just cd into them and type format until it doesn't say "command not found" - when you find it format the c: drive and navigate back to the win98 directory of the cd - type setup from here to begin the installation.
IBM's are great laptops for linux tho ;-)