You can test it with just one unpacked ISO to see if it will work. I just mounted up disk one, created a symbolic link under my web root so it shows up the same as yours:
http://myserver/disc1which contains the RedHat/base and RedHat/RPMS directory. I created a network boot floppy from the /images/bootnet.img, and a network extra driver disk from the /images/drvnet.img file, booted the bootnet disk, picked my network card from the extra driver disk, told it to configure IP via DHCP, put in the IP address of my web server, and "/disc1" in the directory prompt and it loaded up stage2 of the installation from my http server and started the normal install you would get from a CD install. So it should work. I did not try and use your win98 server as an http server from here but I will if you want me to test it. Like I said, I use Apache web server but it should not matter.
P.S. are you doing this just as an exercise to try the different installation methods? I'm curious why you are not installing from CD. If you don't have a CD drive on the machine you are trying to install to, you can just temporarily move the CD drive from the machine that does have one to the one you want to install on. Just for the purposes of installation, then move it back.
[ August 21, 2002: Message edited by: VoidMain ]