I just installed Win98SE on a Packard Bell Legacy 4540 (i think) with the PB600 mother. The protected mode driver for the floppy does not work so I disabled it (hsflop.pdr was not loading - bootlog.txt). Now it boots up fine, BUT:
Win98 SE insists that I have a 5-1/4" floppy as A: (it's a 3.5).
I have removed the floppy controller and let Windows add it back to no avail. Also, I disabled the floppy controller in Setup and added it back (yes it is 3.5" in Setup).