98 cab file and windows installer proble

When installing office 2000 on 98 2nd edition I get an error message stating that there is not enough disk space for file swaping (which is not true 8gb) or corrupt cabinet file. Next error message “windows installer not working cabinet files are corrupt”. I have tried a clean install of 98 (formatting and starting again) this still does not correct the cab files. Is this a hardware problem? or am i missing something.