This was the resolution provided by GreenieLeBrun who responded
in alt.windows98...

2. Go to http://www.bootdisk.com/bootdisk.htm and down load the boot
disk image for the OS version you are using.
Make the boot disk (floppy) and boot the machine from this. Insert the
CD, connect to the CD drive and type setup.

Worked nicely.

Thanks to everyone who responded, and there were quite
a few of you, for taking the time to provide your adice. It took
me one or two attempts using the bootdisks above, an Partition
Magic 7 to format the 40GIG as Fat32. Once that was done
and I booted from the bootdisk above the installation worked.
I'm now downloading driver updates from IBM's T30 Matrix
driver site for audio, video, Intervideo, modem and ethernet.

I can now return this machine with an updated Win98 OS
and make my neighbor happy.

Again, thanks to all of you for your input. It was very
informative.

--
Dr. Timothy Martin, The Official and Only OS/2 Guy
Warp City Web Site - http://www.warpcity.com
email: OS2Guy@Gmail.com OR eCSGuy@Gmail.com