Hmmm, I was able to bypass it by removing the win98 CD, then, it froze again, but I click on some random area and I came back to life. Though I now fear the problems I may get for removing the CD and bypassing the plug and play device analyser.
Right on the screen when it is doing the device install process it says it may stop responding don't eject the cd just follow the instuctions on the screen. It says to restart the PC If it stop's responding. But dude like everyone else is telling you 98 is pure crap, Acuire yourself a copy of Window's 2000, Much better and only requires 32mb of ram to install, But of course If you want to do anything with this then 128mb should be the min.