OK, in that case your best bet is this :
Remove the hard drive from the computer & connect it up to a working machine. If the working machine only has a single hard drive on the primary controller (i.e on the ribbon cable), then you can configure the 2GB drive as a slave & attach it to the same cable. Alternatively, if you only have one drive (usually a CDROM/DVD drive) on the secondary cable, you can configure the 2GB as a slave & attach it to that cable instead. This is assuming that the optical drive is set as a master of course.
Boot up the working system with both hard drives attached. Once Windows has loaded up, insert the Win98 CD & copy the [win98] folder from the CD onto the old drive.
Make sure you have at least 500MB of free space on the old drive left after copying the win98 folder. If you don't have enough space, then you'll need to delete some stuff. Do not delete any files in the root of this drive. It should be safe to delete the program files folder though, as well as the temp folder etc.
Shutdown & remove the 2GB drive. Reconfigure it as a master & reconnect it in the old system.
Boot up the old system. As soon as the first screen disappears (i.e memory count & drive detection), press the F8 key a few times at 1-2 second intervals. This should bring up the boot menu.
Select command prompt only from the boot menu & press <ENTER>
The system will boot to command prompt. Type the following commands in, pressing <ENTER> after each line :
This should start the win98 installation off. When prompted, tell it to install to a folder other than c:\windows.
Quick word of warning....
If you don't feel confident enough to connect the drive up to a working system etc, then DON'T. It would be safer in this case to try & get the CDROM drive & floppy drive working on the old system