want to convert 98 to XP

I have a computer with windows 98, It came with xp but, due to the preferences of my mother, she had 98 put on it. I have a CD with XP on it from a previous computer. I was told that I cannot put xp from this disc onto another computer but that I could try. Sometimes, it works. I managed to get the CD to take but then it came up with a screen that said it was going to install it to the C:partition. The problem is, the C:partition contains win98. It stated that it could not share that partition with win98. I would have to uninstall it. The other problem is what to uninstall. In my add/remove programs, I have the following:
Adobe Acrobat 5.0
Adobe Flash Player ActiveX
Card Reader v1.14e049
Intel(R) 536EP modem drivers and utilities
Internet Explorer Q916281
Microsoft.NET Framework 1.1
Microsoft Data Access Components KB870669
Microsoft Internet Explorer 6 SP1 and Internet Tools
Microsoft Outlook Express 6
Microsoft Windows Critical Update Notification
Nero OEM
Outlook Express Q837009
S3 S3Display
S3 S3Gamma 2
S3 S3Info 2
S3 S3Overlay
Security Update for Windows 98 Ver 1.15
VIA Rhine-Family Fast Ethernet Adapter
VIA Vinyl Audio Codecs Driver Setup Program
Windows 98 KB891711 Update
Windows 98 KB896358 Update
Windows 98 KB908519 Update
Windows 98 KB918547 Update
Windows 98 Q823559 Update
Windows 98 Q840315 Update
Windows 98 Q888113 Update
Windows 98 Q890175 Update
Windows Media Player System update (9 Series)
WinZip
I need to get this 98 completely transferred to xp. If anyone can help, please let me know. There isn't much of anything I need to backup. So this shouldn't be an issue.

Firstly, you're describing that you want to upgrade windows 98 to xp which requires an upgrade disk. Secondly you mention that you're using an xp disk from another computer. This is software piracy and against your agreement to use windows XP via the EULA that came with the disk. You must either buy a full installation disk of windows xp OR a windows xp upgrade disk. Like I said it looks like you're upgrading so you might look into the upgrade disk unless you're wanting to do a fresh install which I personally would suggest instead.

Although I would mostly agree with Niclo,I would strongly advise against
an upgrade of any kind.
You need to boot to the xp cd and have it wipe the drive clean
(after you have saved everything you want).
Lastly what Niclo says about not being allowed to use the XP from another computer is true .
But you said the computer originally came with XP so if thats the license your using then it should be fine.
You dont do it from within windows.
You must boot to the XP cd and when it is installed it will require you to activate it. SO be sure you use the key that computer was originally sold with.