Do you try to re-boot after it freezes to see if install will pick up where it left off?
Also, make sure you do not have a built in antivirus program running which is accessable in BIOS. If antivirus programs are left running during Setup, they may prevent Setup from properly updating the system files. If this occurs, disable or uninstall the antivirus program, and then run Setup again. After re-formatting, its only the one in BIOS that may be the problem.
Are you using a Win 98 Startup diskette to install where it uses the virtual ram setup to allow use of the disk utilities and to install the CD-ROM driver to complete setup?
This may not be relevant at this stage, but for your information : If you want to format drive C, you need to make this disk a system disk so that your computer can start. To do this, type /s at the end of the FORMAT command. For example:
FORMAT C: /s
System Startup files will be automatically copied after your drive is formatted.
I've probably set a World Record for the number of times I've installed Win 98 and Win 98SE. It froze on me many times at different stages. And, yep, I re-formatted HD to always get back to a fresh start. Didn't solve the install problem...just made me feel better starting from a clean point.
I recommend just turning off the power, wait about 15 seconds, and turn the power back on to see if install will complete. You may have to do this many times.
You can also scan disk for errors. To check all your hard disks for errors, type:
To perform a full surface scan of your hard disk(s) for
maximum protection against data loss, type:
Scandisk /all /Surface
If you get LONG FILE NAMES errors, these need to be corrected within Windows later.
Hope this gets you started in the right direction.