Wow, that guide has way too many steps and is way too complicated. I would try it my way Pavlyk.
Backup all stuff on C:
Leave your XP NTFS as it is. Run the 98setup using the bootdisk from www.bootdisk.com
to load the CD-rom drivers.
Check wich drive is your Z:/> partition by going trough a:, c: d: etc
Type "dir" each time and make sure you know wich driveletter is assigned to your 7GB (z
partition. I guess it will become c: under DOS.
Type "setup" at the a:/> or the Cd-ROm's driveletter.
Install windows, make sure it installs to the correct path/driveletter/partition.
Reboot and see if XP detects both installations. If not, boot the XP disk, ente recovery console ("R") and type "fixboot"
Reboot and it should detect both windows.
I am not 100% sure about this way,but it should work
You can always try the guide intercodes posted if you want to make sure.