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You can use that (cheap) upgrade to do a full install.
I don't think it's worth the $, but I got it running successfully. (See my thread "MEOS as an OS is a POS")
Use the win98 boot disk. Start with CD-ROM support, plug in the ME CD, and when asked, plug in the 98 CD.
You don't even need to format, just fdisk with large disk support (fat32) and go. The setup will format the disk for ya.
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Black holes are where God divided by zero...
Cheers, Jim
Jims Modems
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