How much RAM do you have? Windows 98 has weird problems like the resource errors you're seeing if you have too much RAM. If I remember right, you start having problems with more than 512MB of RAM, and 1GB won't work at all without some workarounds (or a third-party patch).
The procedure Eyesee posted is good. You can even pull the hard drive, install it in a USB enclosure (if you have one), and copy the files directly from the ISO (Windows 10 and 11 can open ISO files as a virtual CD) much faster than using a physical CD.