HD Install :: Need some help w/ Install

Hi all.
First, i must say I'm (almost) totally new to linux, so I understand that there won't be probably one-click solutions for me, but much reading. It's just that any instructions i've tried to read on the subject blow me with terms and commands that i don't understand.
I have old Toshiba laptop (3110ct)
P-II 300mhz cpu, 128mb ram, 30gb hdd.

It is ultra slim model so it doesn't have nor floppy neither cd-rom. (to be precise, it has pcmia cardbus cd-rom, which doesn't support booting, and bios doesn't supprt cd-rom booting anyway.) It also doen't have network card, and can't boot from usb. I only have pcmia wifi card which is helpless.

I have dual-boot with win98 and win2000 at startup. So dos mode is accessible to me (when i press F8 in win98 and enter "command prompt only"..
My hard disk partition destribution is pretty complicated. So you will get better idea by seing it:

Disks C (win98) and F (win2k) are primary partitions, rest are extended partiotion. Disk C is active. Disk Z is separate swap partition for Win2000 (win2k swap file sits there)
Disks H and E are temporary and can be removed if needed. Also D can be resized to smaller one.

What I've done so far - is extracted the contents of the .iso file on c: drive.
No idea what to do next.
Please help.