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Raid, does it need an NTFS partition?

You need a RAID controller, but yes you can. Software RAID? I've never seen software to support Software RAID in Win98, doesn't mean there isn't any.
 
Yes you can use RAID in Windows 98, however unles WIndows 2000 wherein the OS can manage the RAID array by itself you WILL need a RAID card for Win98.
It can however be just the regular cheapy software RAID cards that rely upon the processor to do the calculations that so many motherboards come integrated with now.
 
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