I had a computer resetting like yours over and over and I couldn't figure it out. Eventually I found out that I had to go into the CMOS (usually by hitting Del during boot up), go into PnP/PCI Configuration, and set "Reset Configuration Data" to Enabled. Exit and save. The PC resets the configuration and Win98 should be able to proceed. Let us know if this works.
ps. The wording may be different in your CMOS but find Reset Configuration Data and Enable it.
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