It sounds like you might have a sector problem with the hard drive.
Also if you tried to use NTFS for the windows 2000 there could be other problems as well (see below).
Format:
Boot the system from your windows 98 boot disk selecting boot without CD support.
(You can get a boot disk file from
www.bootdisk.com)
At the command prompt type:
format c: /q and press enter
type:
y and press enter
This will take a few minutes to complete, once it’s done type:
scandisk /c: and press enter
When scandisk is finished you will be asked if you want to check the drive for errors choose yes.
This will take a long time to complete depending on the size of the drive it could take hours.
What this will do is mark any bad sectors as bad stopping anything from using that sector.
Fdisk:
If you used NTFS for the 2000 install you will have to use fdisk first to delete the partition.
From the command prompt from the boot disk type:
fdisk and press enter
has an excellent fdisk simulation that will walk you through the rest of fdisk.
Once the new partition is made and is set to active you will have to format the drive (see above)