It's the same as this message, even though the detail is different.
http://support.microsoft.com/kb/q289727/

Make sure the drive is correctly partitioned and formatted. Make sure there
are no hardware faults. If a drive overlay is being used make sure that the
system is being started correctly so the overlay is active. For instance, if
a drive overlay is used do not boot to the CD to start the installation
process.
--
Jeff Richards
MS MVP (Windows - Shell/User)
"dlsayremn" wrote in message
...
I am trying to help johnorun at TechGuy.net who is trying to install 98SE
on
an old computer. Did a google, but couldn't find anything, but a site
(2008
Global.net or experts-exchange.com) that gave popup need to download
Activex
Control to view ( I bit)win32 Trojan Downloader: FakeAlert.NP Trojan.

Copy of his post. Anyideas?

Need help to helpI get this : "Windows Setup reqiures 7340"...
I'm trying to install Win98 on a 1999 Sony Vaio laptop, model PCG-430,
with
a new blank Hard Drive.
I went to the E: drive (which is the temporary location of the CD-Drive)
and
typed in "setup".
This appeared on the screen:
"Please wait while setup initializes.
Scanning systen registry...
Windows Setup requires 7340"

What does that mean?
I can't switch to any other drive since there is no drive prompt present.
After I power off the laptop and restart it, the same text appears. I
can't
do anything, including entering the BIOS!
HELP Please!
I need to get this laptop running asap for a project.