Try the following:
Only have 1 stick of
ram in the pc when you install windows - after windows has finished installing completely you can put it back in.
After XP has finished copying files and is about to reboot - remove the XP CD or otherwise go into BIOS and set the hard drive back to first boot device. With your motherboard you may need to set the Removable Device to Floppy as well just to make sure it won't try to boot off CD at all. Some motherboards automatically boot from cd if there's one in the drive - it sounds like this may be happening in your situation.
To try to get the Win98 bootdisk to work go into BIOS and set Floppy as the first device in Removable Device Priority. If you can get the floppy to boot correctly then use FDISK to delete the XP partition off the hard drive. Then you'll be able to try a clean install with the XP Upgrade cd.
You will need to change Removable Device Priority back to CD. One in Windows setup - choose New Installation not Upgrade.
If the 98 boot disc absolutely won't work then try the XP disc again. You need to delete the current partition and make a new one. When XP asks what file system you want - select NTFS (but not the quick option). Once again make sure you select New Installation not Upgrade. It will then ask you to insert the Win98 cd - insert it - windows will check it and tell you to put the XP disc back in. Don't forget to change BIOS as soon as it reboots.
Also regarding your ACPI query - in the BIOS menu under Advanced Chipset features - the PMU setting enables or disables ACPI. I think the default is disabled. So maybe try changing it to enabled and see if this fixes your problem. Let windows try to detect ACPI by itself don't press F5.
You can disable ACPI by pressing F7 on the window where XP prompts you to press F6 during setup to install 3rd party drivers. You will not get any confirmation. I wouldn't recommend doing the F7 unless none of the above works.