Drapes. One gig is pleanty for win 98, leaves room for office suite and continues to work fine and dandy.
As far as fdisk goes, I have been told by one far more knowlageable than myself that it is way to create a partition but it will erase your hard drive (tried and tested). His words 'think of fdisk as f**k disk'.
From vague memory you should get the partition option one or two steps after typing the fdisk command in dos.