Need some help in windows 98

BEFORE I START, i alredy know that using an a virtual machiene would be better, but im fixing this system up for nostolgic reasons. But anyway, here is the problem im having. Im shur that everyone who has installed windows 98 knows that you need to have your windows 98 CD in the disk drive when installing drivers for new hardware. But for some reason whenever it says "Pleas insert disk lables Windows 98 SE" i do so then it says it couldint find the disk, then it tries to search through some wierd directory thats within the windows core files. Any idea whats wrong? im sorta clueless. 

Well are you sure the disk you have is Windows 98 Second Edition and not the original Windows 98?

yah im shur