When I create a partition on my hard drive using the windows XP it is not created (there is still the same amount of unpartitioned space to when it was not created).And when I create a partition using the windows 98 startup disk (fdisk) it is created but if I go on fdisk again the partition is not there (there is still the same amount of unpartitioned space to when it was not created).I have tried 3 hard drives and there was still the same problem.
I can format the partition using the windows98 startup disk but windows XP will not format or install using the windows98 startup disk format.

Maybe the partition table(s) is/are FUBAR? How about wiping the beginning of the drive clean with a disk wiping utility (or the dd command in any decent OS (not Windows))?

Or maybe just try a Linux live CD and partition there?

I'm assuming you have your computer set to boot from a cd? When you are at the screen that shows what partitions are on your hard drive, try pressing d or something (it says at the bottom of that screen) and it should allow you to delete it. Then create a new one and follow the rest of the setup. (to create a new partition, select the space you want to use and press c. At least thats how i do it for Media Center Edition)