Welcome back to the boards JAMMAN, I'm sure my copy of Win98SE is not bootable, I just tried it to make sure before I had to put my foot in my mouth and admit I was wrong... but alas - not bootable, it comes with a boot-disk.. maybe its the version or release of the CD I have, or the fact that its the full version and not the upgrade don't know, oh well...
ibelimb, I wasn't trying to say you were stupid if it was me you were talking to, I was just going down the list of things you could do step by step,.. I had know way of knowing your level of computer experience and wanted to make sure you were doing the right things in the right order in an attempt to get things working again. Sorry if I offended you, but its safer to explain things step by step than just assume the person knows what your talking about.
But if your getting that error when booting off a boot disk then chances are the CDROM is shot.