Swap Partitions???

Since your Windows XP is installed to D:\, you'll have to keep it that way. All installed programs and registry entries will point to D:\, so if you move your windows installation to C:\, your programs won't be able to find themselves.

Something you could do is use a partition manipulation tool like partitionmagic of http://symantec.com or Acronis Disk Director of http://acronis.com to resize your C:\ to the minimum needed (You can first uninstall all possible applications which you were using in windows98, and also reduce windows 98 to "barebones", so that it only uses a minimum of space. Then empty your recycle bin and run a defrag.

After that you can resize or move your D:\ to suite your needs, or you can also make a new partition, E:\, for your data.

Of course, before manipulating your partitions, you should make a backup of your system, as it is always possible that something doesn't work.

Can symantec ghost be usefull??
Will it work if I create a image and then cast it to etiher of the partitions??

Ghost is only usefull if the partition stays D:\, or if you want to move to another disk, but the OS itself will have to stay on drive D:\.

Ghost is also usefull to backup your system to image files, so you can do a restore if your work breaks something. Remember you can only ghost to another partition than the partition you are ghosting.

The problem is that the boot.ini file is on C:\, wich means if I'm going to format C: the computer will not boot.
I think I'll just go for a complete reinstall, but Ive hope there was a quicker way of doing it.  The Windows 98 on C: does not boot completly, have to many problems and has become useless so it's just taking up space.  So I can delete everything and only keep the boot files but I do not want files floating around until somebody accedently delete them or format the drive.  

Thank you both for answering
Beeshoring

Thanks rindi, thats exactly what I did...

Beeshoring

thanx too.