Phase 1: Preparing to run Windows 98 Setup
During this phase of the process, Setup performs a number of actions that prepare the Windows 98 Setup Wizard to guide the user through the installation process:

• Creating a SETUPLOG.TXT log file in the drive root directory to keep track of each step.
• Identifying the source and destination drive locations for the Windows 98 files that will be installed.
• Copying a minimal Windows 98 Setup cabinet file, called MINI.CAB, into a special directory it creates at the root directory, C:\. This directory is called Wininst0.400.
• Extracting the major Setup files, also known as PRECOPY1.CAB and PRECOPY2.CAB, into the Wininst0.400 directory previously created.

Phase2: Collecting information about the computer
After the setup files have been successfully copied to the hard drive, the Setup Wizard displays the licensing agreement. Read this agreement, become familiar with the terms and conditions of using the software, accept the agreement, and proceed. Setup asks the user to enter the product key. The product key is found on the software Certificate of Authority (verifies product authenticity), or on the back of the CD case. When the product registration is completed, Setup starts to gather critical information about the system, including the following:

• The directory into which Windows 98 installation files need to be moved.
• The amount of space on the selected drive. There must be enough space to hold the Windows 98 installation files, and temporary files required to complete the procedure.
• The type of installation desired (Typical, Portable, Compact, or Custom). Typical is aimed at the general non-technical user, whereas Custom is for specialized technical purposes.
• Company and user names. For a personal computer, the user name is all that is required.
• The Windows 98 components that you wish Setup to install.
• The computer network identification. A network ID can be entered here, even though the system may not be in a networked environment.
• The Internet location from which the system can receive regional update information. This is important for the system to function with a proper date and time for the local time zone.

When Setup has gathered all the installation information, it stops and prompts the user to create an Emergency Startup Disk. Follow the on-screen instructions to create a start up disk. Setup will then begin installing Windows 98 files to the selected drive.

Phase 3: Copying Windows 98 Files and restarting the computer
Most of this phase of Setup is automated. It begins with the Start Copying Files dialog box. Because this phase is completely automated, no external input is required from the installer. Once Setup has copied the Windows 98 files to their proper locations, it will display a prompt to restart the system. The system will restart automatically if no external entry is detected within 15 seconds.

Caution: If Setup is interrupted while still copying Windows 98 files to their different locations, the system may be prevented from starting up again.

Phase 4: Setting Up Hardware and Finalizing Settings
The system should then restart automatically, and Setup will finalize the installation process. Setup will use information that was provided in Phase 3 to install the following:

• The contents of the Start Menu
• Settings for DOS programs
• The Control Panel
• Application Start functions
• The basic Windows 98 Help functions
• Time Zone information
• The system configuration information

Setup will automatically restart the computer, once again, upon completion of these steps. Log-on at the prompt (if any log-on information was entered), after which Setup proceeds to establish a system driver database, update the system settings, establish personalized system options, and finally display the Welcome to Windows 98 dialog box on the screen. If Windows detects any new hardware such as a video card, a splash screen displays "New hardware detected". Windows finds stock hardware drivers and auto-installs the hardware with the proper driver. When complete, the Windows 98 desktop displays and the setup process is complete.

Any drivers auto-installed by Windows are stock drivers. If there are any problems, the drivers need to be updated with the most current versions that contain the fixes for any problems with previous versions. The best source of up-to-date drivers is on the installation CD or disk that came with the hardware. If not, check the manufacturer website to download them. They are usually free downloads.