There is windows 98 and 98SE(second edition) and there is windows ME (millinium) along with Windows 3.1, windows 95, windows NT, windows 2000 pro, windows XP and XP pro and now windows Vista and all its versions and soon to be windows 7...but alas no windows 98ME
If this harddrive is an external drive connected by USB to laptop then you can use disc manager to format the drive.
Connect the drive
rght clk my computer
select disc management
rght clk on drive shown in window and choose format