Please see this first:
I did what Callandor suggested and got the .pqi file on the new drive using Drive Image. Was going to just change jumpers, boot to the new drive, image the 98 on the new drive, and than install XP, thereby saving programs, drivers, etc. Not the right way, but...!
So, I got this inspiration to "Copy", using DI, the contents of the old drive to the new.
What I now have is the old drive with 98 still on it looking like this:
On the new drive, "I have the same thing as above" with 48,585 MB Unallocated, unusable. Like brown color in PM 7.0.
I installed Partition Magic 7.0 on the machine.
I now have the new HD by itself, so as not to muddy the problem, boots to the copied 98 OS just fine, shows all that unallocated space and, for some reason, PM 7 won't let me resize. First, it says I can only resize it to 32,781, not the full size, and even fails that operation. No error, just doesn't do it.
What I'd like to do is just get rid of the copied 98 OS and restore the drive to it's original, like new, state and than go back and do it the right way.
Would a simple fdisk, format, do the job?
Gotta get this PC back.