If I got it right you have formatted the HDD
so an upgrade 95 to 98 would need an 95 install first
I would go for the 98 disc.
Have heard that the upgrade doesn't work as good.

I have been looking for a 98 upgrade though
for a 95 machine I don't want to format !
because I had it soo long and it would be such a hassle
to reinstall all the shit I got on it.