Go to a Win 98 machine, pop in a floppy, go to a DOS prompt and type "format A: /s /u" When it's finished formatting copy the file C:\command\format.com to the root of the floppy disk.
Now, take that disk to your WinME PC, and pop it in the floppy drive. Do a hard reset (doesn't matter since your'e formatting anyhow). When the PC boots to the floppy, at the A: prompt type "format c: /u /s". If you wish, add /q for a quick format. When it's done formatting remove the floppy and reboot.
Once rebooted, put in the driver floppy for your cd rom and run the setup on that disk. This will install Real-mode CD ROM Drivers. Remove the floppy, reboot.
Now, put in your Win98 Cd and check to see if you can access it. type D: and hit enter. Then do a dir. If all is well go back to c: by typing c: and hit enter.
Type "makedir cabs" and hit enter. Now type "copy d:\win98\*.cab c:\cabs" and hit enter.
Sometimes when installing Win98 or Win95 you will lose access to the CD ROM drive because the windows install REM's those lines out of your Config.sys and Autoexe.bat before the protected-mode windows drivers are loaded. Then it can't see the CD ROM drive to finish the install. By copying the *.cab files to the hard drive, if the install asks you to insert the Windows 98 CD during setup, just browse to C:\Cabs and click OK.
Now, type D:\setup and go paint the house.
Brian