nope you will need to prepare a fat32 partition . If you want to use windows 98 with xp it is very much recommended that c:\ should be fat32 and 98 should be on c:\ ( so it will work even if all other drives are ntfs but 98 wont detect ntfs drives ) .. If all your drives are fat32 then no problem u can put xp or 98 on any of drive . Install xp after 98 .... or as ujjwall said repair bootloader after 98 setup ( recovery console from cd and fixboot ) .
edit edit : You can use http://www.sysinternals.com/Utilities/NtfsWindows98.html to access ntfs from windows 98 .. but ur c:\ still need to be fat32 to hold win 98 os .
edit edit : You can use http://www.sysinternals.com/Utilities/NtfsWindows98.html to access ntfs from windows 98 .. but ur c:\ still need to be fat32 to hold win 98 os .