Out of Memory - Installing 98lite in low memory or sub-minimum hardware environments.

by LitePC

Three things that may help:

run 98lite with the /nm switch - this is passed to the windows setup and means "no minimum" as in no minimum hardware requirements (a windows setup feature). The /nm bypasses the hardware test during windows setup
If you think 98lite is hanging - try the /ng switch also (no VGA graphics in 98lite) just to lower the burden on the system.
Boot using a standard windows boot disk that loads the CDROM driver - after you have completed the phase where 98lite copies all the CAB files over to the hard disk - you can then reboot with the boot floppy and this time do NOT load the cdrom drivers. This ensures that the Microsoft EXTRACT program has the maximum amount of memory to work with in extracting the setup files.