It's my friend's dad, not mine...
I got it working. All I had to do was delete the partition I'd made and do it over... I guess there was some error or something. Never did find out why it wouldn't let me format the partition.
I used the simple "format C:" command. Honestly I dunno what the "/s" is for, and I've seen "/u" before, but dunno bout that one either.
The problem was getting the thing to format. I know the "Windows Requires blah..." error message was because I'd been trying to install to an unformatted partition (but it wouldn't let me format until I deleted the new partition and simply remade it).
Stumped as to what happened, but now it's whistling along with Win98 as happy as can be... except the laptop's LCD display is dying. Oh well, can't be helped, he's got monitors to use.
And those of you wondering "why bother?", the answer is simply customer + demand = money. If he wanted Windows 98 on there, I'd put it on there.
Oh, and Win2kpatcher, I wouldn't reformat the drive to NTFS if I was going to install Windows 98 on there :\