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Disk Write Error Problem Loading Windows 98SE

I put together a new PC in December consisting of all brand new components: Intel 2.26 GHZ processor, Intel D875 motherboard, Sony DVD-CD burner, GE Force video card, with a Kingston 512 MB memory stick. I installed a brand new Windows 2000 operating system but have had nothing but problems. A computer store owner told me that a FAT 32 kernel and the Active X features created a lot of problems. I believe him because last week I couldn't even go to secure sites such as PayPal. I decided to install Windows 98 SE which I have been using since 2001. But the installation stops everytime after I see this message: Please wait while setup updates your configuration files. This may take a few minutes...

Completed updating files, continuing to load windows...

After several minutes of no activity I see this final message on a blue screen: Disk write error - unable to write to disk in drive C. Data or files may be lost. Press any key to continue.

The hard drive is not the problem. What can the problem be? I am guessing RAM memory, processor, motherboard, or power supply. Can anyone help me with this problem?

Can I create a network without a hubswitch or router I mean, 3 PC and
The situation is this: I have a PC with cable modem connected via a long inverted or...

Thank you

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Can I create a network without a hubswitch or router I mean, 3 PC and

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