Another possibility, if your can maneuver around at a dos prompt on the laptop. This should work, though I just thought of it, and have not tried it to be sure.
*edit* I just tried it everything but the actual install of windows and it does work.
On a working win98 system, go to the control panel> add/remove programs > startup disk tab, and make the start up disk. This makes a bootable floppy with cdrom drivers for dos. Then copy format.com, sys.com and edit.com from the command folder in windows, to the floppy. Look at the files on the floppy, find the file edb.sys and change the attributes to archive and system only, unchecking the read only and hidden boxes.
Now use this disk to boot the system. Use fdisk to set the drive up, reboot and at the a: type> format c: /s This will format it and get the system files on the drive. After this is done, from the a: prompt, type> copy *.* c:\ This will copy all the files to the hard drive. It is going to say that command.com already exists, and ask if it you want to overwrite it, say no. Now type c: then type> edit autoexec.bat down a few lines is this entry: path=%RAMD%:\;a:\;%CDROM%:\ change the a:\ in this to c:\ Now use the alt and f keys, this will get you the menu, arrow down and choose save. Now use alt and f keys again and choose open, use the down arrow key and choose setramd.bat in this file is the line: a:\findramd change it to c:\findramd save this file and then press alt and f and choose exit. If I have this figured right, you could pull the internal floppy out, put the cdrom drive in, with the win98 cd in it, and boot the system from the hard drive. It would then run all the files needed to start the system with the cdrom.
Watch what letter the cdrom drive is given, usually it's e: From the c: prompt type the cdrom drive letter> e: then type> cd win98 this gets you to the folder where the setup files are. Type setup and hit enter and you should be on the way.
When windows reboots during the install, it's going to run these files again, just tell it from the menu, to boot without cdrom support, and it will continue to install windows. When you get done with the install, you need to either delete or rename the autoexec.bat so you can get rid of the cd boot menu.