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if you can boot from the win98 CD it should be able to reformat and install 98 and get rid of NTFS, iv done it before so i know its possible, if you can, boot from the CD and choose to format, youll see some stuff about NTFS and you gotta format it with fat32. or whatever one you want. good luck:)
Win98se original CD's are Bootable.. priovided the BIOS supports cd boot..
The CD will have the tools you need to partition and format the HDD.. and then install Win 98
Please note the Important Facts here..
Win98se (Original -or legit)
Motherboard BIOS supports CD BOOT (CDROM is in the Boot order)
You have your CD Rom correctly assigned.. ie if you have more than one CDROM (DVD and a CDRW) you don't have both assigned as Master on the same IDE bus.
And your Win98se cd is in the Booting Cd Rom drive..
..
the CD is Win98se isn't it..?
please excuse if I come across a little harsh.. not intended..
Cheers
well not all win98se are bootable. so make sure u get a bootable one, and ur problem is fixed.
good luck