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Is it possible ot upgrade from 98 first to second edition !? or do I need to reformat ?

Yes, it is possible to upgrade from Win98FE to Win98SE without a reformat.
 
I lost count how many times I have switched OSes.
I have always had better results with operating systems after installing to a clean disk. But there isn't a massive difference between the editions so you should be ok.
 
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