If you have a second harddrive with enough space, yes.
If you have only one harddrive or not enough space...no way.
This is not an upgrade for Bill Gates & his gang, so they never thought of someone doing this.
May I suggest you go for a dual installation, have w98 for your sims and the stable w2k for the rest?
You can even do this on two drives, and drives are not so expensive anymore...
Migration from one drive to another is possible with norton ghost, very fast and reliable, once you read and understand the manual (360 pages....)
Also Powerquest with the Drive Image 5.0 can do the job....