Fatal Error on Windows 98SE install.

I am attempting to reload Windows 98 onto a re-formatted
hard drive. The drive was completely clean upon beginning
this endeavor. I reformatted the disk by the following:

1. Insert Windows 98 SE startup disk into floppy. Power
up computer
2. go to c: prompt. type "format c:/s"
3. All infomration will be lost y/n? Yes
4. wait until reformat. Volume label, enter for none. None
5. at c: prompt, i typed "fdisk /mbr"
6. Then, I reinstalled windows.

The disk is the Windows 98 SE upgrade from Windows 95. I
get all the way to the end of the setup and when windows
reboots for the final time, it freezes on the Windows 98
logo page upon startup. I then am left with no choice but
to manually power down.

Upon power up, I get the following message: A fatal
exception OE has occured at 0028:C0052A02 in VXD VPICD(01)
+00001EC2. The current application will be terminated.

I have tried to install the OS with and without the
PCMCIA Ethernet card. Only the number of the error
changes. This laptop has no other peripheral devices
attached to it.

The OS disks are good because i tested the disks on an
old PC using the same procedure. Worked perfectly.

Any ideas or suggestions?? Please HELP! Thanks!