WIN98SE Install Problem

Ok..first off I feel kinda stupid for asking this, but I’ve been fighting this particular problem for far too long…

I have an older ACER Laptop, Pentium II 366MHz w/712MB of Ram and 20Gg Hard drive.

I’ve been trying to re-install WIN98SE on this on this machine again after wiping the hard drive of WIN XP Pro.
After it gets to approx. 60% I can here the CD Rom spin up and down likes its trying to find files, then it says it can’t find a particular .cab file.

Here’s the part that throws me off…If I reinstall WIN XP Pro, I have no problems at all.
I know the WIN98SE disk I’m using is good, for I’ve used it on other machines without any problems what so ever.

Any ideas?