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Windows 98 Setup can be divided into the following phases:
Pre-File Copy PhaseDuring this phase, Windows 98 Setup runs ScanDisk on the hard disk, sets up the Windows 98 Setup Wizard, determines the folder in which to install Windows 98, prompts you for your CD Key number, and determines the components to be installed with Windows 98.
Windows 98 Setup first displays the End User License Agreement (EULA). When you accept the EULA, Windows 98 Setup prompts you for your CD Key number. The CD Key number is a twenty-five digit value located on the back of the Windows 98 CD-ROM sleeve.
When you run Windows 98 Setup from within Microsoft Windows 95, Setup automatically installs Windows 98 to the same folder in which Windows 95 is installed. When you run Windows 98 Setup from Windows 3.1 or MS-DOS, you are prompted for the folder in which to install Windows 98.
Windows 98 Setup then runs ScanReg to test the integrity of the registry. ScanReg also makes a backup copy of the registry at this point.
You are then prompted to save system files from the previous operating system. Saving these files enables to uninstall Windows 98. Note that if you convert your hard disk to FAT32, you no longer have the option to uninstall Windows 98.
Windows 98 Setup then determines what components to install based on the following criteria:
You are then prompted to create a Windows 98 Startup disk. After you create a Windows 98 startup disk, Setup proceeds to the file copy phase.
File Copy PhaseDuring this phase, Windows 98 Setup copies the files needed to complete Setup. This involves copying files from the Windows 98 CD-ROM or shared network drive to your local hard disk.
Enumeration/Detection PhaseDuring this phase, Windows 98 Setup determines what hardware components are installed in your computer. This phase requires you to restart your computer either once or twice, depending on the type of hardware in your computer. This Setup phase can be identified by the Setting Up Hardware screen.
Configuring System SettingsDuring this phase, Windows 98 Setup configures Control Panel, prompts you for the appropriate time zone, and finalizes system settings in preparation for the first time Windows 98 is started.
Configuring Internet Explorer SettingsDuring this phase, which occurs when Windows 98 Setup restarts for the last time, Internet Explorer configures personal settings and any other optional Internet utilities installed with Windows 98.