hdd light normally near to the power light ...(the one that flashes)
free space looks good ... I assume that once up and running system speed ok?
this is getting a little tekky
the next thing you need to check is your boot squence.
so you need to get into the bios ... when you switch on ... a few things will happen on screen ... one of them should be athe message "press xxxx to enter setup"?
sw off then on ... at the appropriate time press xxxx (the actual kes(s) vary depending on mobo.
once in there ... work through the menu to fing boot order
should read fdd - CD - HDD
if it says anything about network or pxe disable the option.
save and exit
while the system is booting ... note what's coming up on the screen .... that's my next question.
just a thought .... do you have a windows 98 bootdisk?
or any CD/DVD that boots? (even windows setup disk)
http://files.frashii.com/~bootdisk/newjersey/b oot98se.exe
if not dowload the image and make one
try booting - what happens?