Failing to install Windows 98

I'm trying to install Windows 98 in my first attempt at Parallels. I get a DOS start up asking 'Boot from HDD' or 'Boot from CD-ROM'. Choosing the second one proceeds, but when it gets to the start up screen to begin the installation, the screen is completely garbled (attachment).

Any ideas?

(Why 98? Because I now find I only have upgrade versions of XP Home & Pro so I need a base system and I can only find the 98 disc).

 

If my memory is correct, you can start the install using the Win XP CD, at somepoint it will ask for proof that you have the earlier version of Windows so you just swap CDs, it reads the Win98 CD for a second, and then re-insert Win XP