If you have NT4 on it, you'll have a few issue's putting windows 98 on it, you'll need to format the drive into FAT 32, Neither the windows 98 boot floppy, nor cd-rom will recognise the current NTFS file system, and won't allow an installation

A dos test will determine if the floppy works or not, and the pcmcia slot's could still be a driver issue, did the laptop come with nt4 on it ?