The NIC card itself is a one port card that you can't fit a phone line into.
I'd try taking that element out.
As a last resort, fix yourself a Windows 98 Boot Disk. When it reboots, it will then bring you to a command prompt. Type in FDISk. Its pretty self explanitory. Then you've got in essence a blank HDD.
The repartition will recreate your HDD, free of FAT boot record viruses, porn, and anything unsavory.
Now, type format c: say yes.
Then, you can just get a Windows 98 CD, insert it, type setup. Then, go get a cup of coffee, use the restroom, and go watch TV for about an hour and a half.
Not following these steps exactly as written may result in failure.