Step 1: Make sure you have the following
A: Windows 98 Cab files or CD
B: Windows 98 Bootdisk
www.bootdisk.com
C: CD Burner
D: Blank CD
E: CD Burner software (I prefer Nero)
Step 2: Make the disk
A: Put in blank disk
B: Put in boot disk
C: Open Nero (or other)
D: Tell it you are creating a bootable disk
E: It will ask you to browse to the floppy for boot record
F: Then drag your 98 files over and click burn
If you want it to got directly to windows setup, you will need to modify the autoexec.bat on the boot disk to do so.
Source :
*www.ntcompatible.com/How_do_I_create_a_bootable_Windows_98_CD-ROM_t23157.html