Just a little update, I still haven't found a fix for getting Live 98 working.
I did install the official patch for Live 98 but it still has the same issue, nothing happens when I launch it. I also tried Windows 95 compatibility mode and it still doesn't work. When I reinstalled the game, setup said something like "Cannot detect hardware!" or something. Running the setup in Windows 95 compatibility got rid of the error.
Both the Live 98 and 2000 autoruns on the discs wouldn't start up when I double clicked on the AUTORUN.EXE, so I had to launch the setup programs through the setup/english folder.
However, I did get Live 2000 finally working and it runs really smoothly! A few weeks ago I upgraded the graphics card on this thing to an NVIDIA GeForce 7900GS. Don't know if that fixed it or what.
Although I do have a weird issue with Live 2000, when I load a game the loading screens are kinda glitchy.

The glitch doesn't happen when I run the game with Windows 98 compatibility, but the game runs at like 10 fps when I have that on. Really strange.
Like I said I have yet to get Live 98 working. If anyone can think of anything, let me know.