So you do not Run a Defragmentation first
And when you shrink the win98 partition you shrink pass the files on that
Sectors!

For your Files are all over the Free space of the Hard Drive you have the
Defrag first to move them out of the free space!

plus Remember that windows files that can not be move and shrink pass one of
those files the Same Error will come up!

And you will not be able to repair it, So I hope you back up1