Windows indentified the card and I allowed it to install the driver from the pre-installed list
I hope that you did not use the driver that is on Windows 98. It is ok to use that initially, but as soon as the computer comes up, you should put in the installation disk that came with the device. If you do not have it, let me know, I will do a search for you.
That does seem to be the next logical step: remove driver, turn off computer, remove hardware, turn computer back on to make sure everything else reads properly, turn off computer, put hardware back in, re-install the driver, and restart it once again. I know it seems like a pain in the backside, but sometimes it has to be done.
Out of curiousity, the files on the disk, did you use a different computer to add information on? The reason I ask, is sometimes XP will try to change the file system on removeable media. This usually happens when you turn the computer on with it already inside. I know that you said that yours is 98, but if the disk had information saved from another computer that is XP, then there is a possibility (albiet very slight), that is the reason why your computer will not read it.
We are all curious like a cat. We wonder, we ask, we learn.
Please post back when a suggestion works, so that others may learn.