Some bios's have a boot menu. To boot off IDE0 (C

or IDE1 (D

. For me I press F8 before it boots off any drive, and the menu comes up. But that might not be true for your bios.
1). If thiers not boot menu, then your bios probably has a Boot First Device, Boot second device, and Boot third device.
First should always be the floppy. Second is any device, IDE0, 1, CDROM. That is how you choose what boot off C or D (assuming thiers no bootable floppy in the floppy drive).
2) yes
3)Windows 98? Probably not
4) Not that I can think of offhand