Scandisk won't fix files and directories ???

I'm trying to rig up a puter to give to a friend to use
for e-mail. I have this old puter that I had Win 98
running on it at one time. It got a really bad
infection, and I ended up formatting the HD. Since then,
I haven't been able to re-install The OS from the
original factory installation disk. When I do fdisk, I
try to delete the existing DOS partition; but I can't,
because the volume label has a bunch of wierd looking
symbols in it. I can't type these symbols in the
brackets, when I am prompted to "enter the volume label".

Next, I tried to scandisk. There were hendreds of files
and directories that I spent hours and hours "fixing" on
scandisk by selecting "fix it". However, each time it
does a re-scan, these files are still there (or more of
them keep appearing). Could I have messed up the HD when
I formatted it? Or, could the infection done this?

I don't know what else to do, since I can't delete that
wierd volume label and re-partition before formatting
again. When I type "setup" at the promt with 98 CD in
the drive, it starts scandisk, and the whole cycle starts
all over again. Any help out there?