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If you bought the 98SE update from Microsoft, it *CANNOT* be used to do a fresh install. The CD was designed to be an update only and does not ask you for proof of a previous version. There is no way to install the update without having Windows 98 installed first.
I was desperate awhile back and even swapped setup.exe's etc to make it work in DOS. The setup will load, but it quits out before it starts copying files. Look for an OEM copy of 98SE, that's what I ended up doing.
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