ntfs.sys corrupt or missing....

On that same W98 bootfloppy is also a Format program. Use that to get a FAT32 partition. During XP-install you can (re)format to NTFS.
You may be limited in partition-size using W98 format. You can always format the rest later, once you are up and running.

I tried that, re-formatted it as fat32, but then durring xp install the same issue arose.

ftns.sys corrupt or missing.

and i'm where I was for the last 15 hours again =(

Get a floppy and copy that file from another XP-PC onto yours.

Don't get too focused on how to get past the NTFS.sys error.. Rather, think what could be causing it so you can fix it.

Here's what Microsoft has to say: http://support.microsoft.com/search...=False&comm=1&query=ntfs.sys&x=0&y=0&srch=sup

When you install Windows, make sure you delete the partition and create a new one. Using NTFS is fine and if there's a problem with NTFS.sys, it is a sign there is another problem.

Possible causes for NTFS.sys corruption are a corrupted file system for NTFS.sys (which we can rule out with a fresh installation of Windows from a clean Windows CD and newly partitioned drive) or hardware problems. Possible hardware problems include incompatible or failing memory (very likely), failing hard drive (likely) or failing CD-ROM / damage CD media (not as likely).

On a more specific chance, it could corruption caused by a bad IDE cable or if you are using a RAID / SATA / SCSI setup, the third party drivers you are providing (or not providing for that matter) may not be fully compatible with Windows or damaged. Try getting the latest drivers from the manufacturer and placing it on a new, formatted floppy disk.

Just some ideas to help you out. Good luck!