Firstly welcome to the forums.
Yes it is possible to Boot from the Windows 98 CD (has to be second edition) and install windows from there :
Secondly, it will not be possible to Format your hard drive with NTFS, this is because Windows 98 only support FAT32.
Firstly you will need to make sure that your computer is set to boot from CDROM first in the BIOS.
Then put the Windows 98 CD in your drive and start up your computer, it should prompt you to with a menu that has 3 choices.
1. Start Windows 98 Setup from CD-ROM.
2. Start computer with CD-ROM support.
3. Start computer without CD-ROM support
Select option 1
Since your Hard Drive is already formatted, this should take you straight to the Windows 98 Installation screen. Just follow the on screen instructions to install Windows.
This site has a step by step guide.
http://www.windowsreinstall.com/win9...exfullpage.htm
Hope this helps