Jinkster,
WinXP would fit on that computer but only running at 350Mhz with 128Mb of RAM, WinXP would bring that poor notebook to its knees.
In your case, Win98SE or WinME would be your best options. With notebooks you will find that WinME will work quite well.
With either OS, you just need the CAB files. Use a bootable Floppy to format the Hard Drive and make it bootable. If you copy the files xcopy32.exe and xcopy32.mod to a floppy you can assess it to make the copy of all files and subdirectories for you. (Make sure the bootable Floppy you use has the CD-ROM drivers on it so you can access Drive D)
With the A Prompt type this:
a:\xcopy32 d:\*.* c:\windows\options\cabs\*.* /s
The /s means all subdirectories.
It will really speed up the process for you. (If you would rather just install from the CD-ROM and transfer the files over later, you can do that and just change the location of the Win98SE/WinME Cabs in the Registry. It is a very simple hack.)
Once you have the CAB files on your hard drive, boot from the notebook's Hard Drive and then go into the Directory:
C:\windows\options\cabs
And type SETUP. That will start the install right from your Hard Drive. (The only thing that will happen is Windows will bitch that there is already a windows directory and ask you if you want to make a new directory for the windows install, you just tell it to use windows and the rest of the install is straight forward.)
Take Care,
Richard