First off, the W98 system may not have enough power to run the printer driver.
Per HP, the system requirements are:
"For PC: Any Intel? Pentium? II or Celeron? processor (Pentium III or higher recommended); Microsoft Windows? XP, 2000 Professional, Me, 98 SE, 98; 128MB RAM for XP, 2000, Me, 98 SE, 98 (256MB RAM recommended for all operating systems); 950MB available hard disk space for software installation for XP, Me, 98 SE, 98 (1.1GB recommended)"
As a shared network printer, you do NOT install the driver directly from the CD.
Exit from the CD, then go to Start Menu,
Settings,
Printers,
Add new Printer.
Specify that this is a network printer, and follow the wizard to find the printer.
Then, once the wizard asks for the driver, click on have disk and browse to the CD.
Chas