Yes you can. I just installed WinMe, by partitioning my hard drive.
I have NT4 on the first partition, and WinMe on the second.
What I did was to create the FAT32 partition C:, using Partition Magic. Then I loaded Boot Magic, copy WinMe files onto the second partition and started setup.
When WinMe requested Win98SE files, I loaded them through my CD.
It worked fine 🙂, and now I waiting for any bugs to appear. 😉.
Hope this helps.
jayd