The best way to install this on a CD-less machine is by copying the install files on your drive, which is the win98 folder inside the CD. Boot using your floppy and just follow the steps until you get to the command prompt.

Change directory to the win98 folder you copied and run the file setup.exe by just typing it on the command promt while on the win98 directory :

D:\win98\>setup

Let me know how it goes. Best of luck