"I cannot seem to get it to take an XP disk from the outset of reformatting....?? "
Not sure what you mean by this, but if you are trying to upgrade from 98 to XP (as appears to be the case) then the upgrade can only be successful if all the 98 drivers are working correctly - which would seem to be unlikely.
Have you tried going into the BIOS, setting the machine to boot from CD and then booting from the XP CD? This would seem to be the simplest, most logical, and probably the only way to achieve a proper install.