Initiate the install as I said then at some point it will have you verify that the upgrade is lewgit by prompting you to insert the 98 cdrom as the following image shows:
Then at the install location you will see the option to delete the exisating partition:
Select the option to delete the partition. then create a new one as well.
It will then prompt to format the partition as :
Do so with ntfs as shown above.
The rest is a piece of cake.