OK......I had a few more tries last night. First, I went back, wiped the disk and re-installed Win98SE in compact mode. That took about 15 minutes - the machine and CD are both pretty fast. Then I tried to do the fresh install rather than the upgrade. That went fine until it booted the WinXP setup and asked me what partition I wanted to use. Well...I wanted it to use the only partition there was - wipe it and do fresh install (as suggested). Um...no. Can't install into the Win98 partition....or at least STRONGLY advised not to. Not interested in a flakey result...so decided to re-partition and have another try. So created a 1GB Win98SE partition...installed 'compact' again...and then in the XP setup, created one big partition (56GB) out of the rest of the disk. Then told it to format NTFS (not quick)......and it got to 96% and went into a loop for an hour. Hmmm....OK...Reboot and straight back into XP setup (good!)...and repartition again - creating a 15GB partition....leaving the rest blank. That worked....and WinXP is now installed and working fine.