Best way to setup new system?

I just received a new Dell system which came loaded with Win2K (which I’ve never used before), an MS Works package, and some Dell stuff…all on the Primary partition which is the whole 40 GB HD (Fat32).
What I’d like to do is:
1. Install/copy myold HD (with 98se)and be able to boot/run all the applications on it.
2. Have the ability to boot to Win2K and start installing the application programs as I get familiar with it.
3. Since the system came with an XP upgrade, I’d like to be able toboot from that (when I receive it) as well.
If I need to get something like Partion Magic to do this, then so be it I suppose. Installing 98se from scratch and re-installing all the old applications on the new system is out of the question. Also, I don’t how NTFS figures into all this…do I need/want it? Do most Win2K installations use it?

Thanks for your help

–Michael