Im trying to install windows 98 in Virtual Pc 2004 but the instructions i was given end up good until this part:

# Now comes the really fun part, and your trust factor has to be high for this :-)
At the A:\> prompt, enter: format c:
(the virtual 16MB primary DOS partition you just created will be formatted in FAT32 format)
# After that, just hit Enter to accept a blank volume label. Now we're ready to install Windows 98 to the virtual machine you have created. Don't worry that you only allocated and formatted a 16MB primary DOS partition. The virtual machine hard disk you created is *expandable*, and will take anything you can subsequently throw at it :-)

When I enter format c in the command prompt it asks me if im sure because it will wipe out everything in C. O_o Is that true or am i doing it wrong?

format C: means the c partition will be wiped, deleted clean, I would do it from the 98 disc. Instructions look a bit sus.

Scary, isn't it? I always do a

Dir c:\

at that point. If you are in the wrong place, there will be a considerable list. If the list is empty, go for the install.