I can tell you from experience, that many times, Win98 will just choke on files that large.
Seems to be no rhyme, nor reason to it, but it does often, in my experiences.
Easiest way woul be to just take the Win98 hard drive, and swap it into the XP machine, as a slave drive.
Just set the jumper (to slave, of course) and slap it in the XP machine....
Should be no problems with it 'seeing' the drive, as you're going 'backwards compatible' now.
You can then just drag & drop the files wherever the heck you like.
This is going to be your easiest way, and will cost you no $$$'s
If for some strange reason, the XP machine doesn't 'see' the 98 drive, check BOTH drive's jumpers...
Occasionally some machines/drives require a different jumper setting on the master drive, if there IS NO slave, as opposed to IS a slave installed.
ie. no slave = one setting............. yes slave = different setting, on the MASTER drive too.
I've run across that as well, sometimes BOTH drives need new jumper settings.
Again, as far as file systems, there's no problem, as XP can read any & all Windows formats, FAT and/or NT based
Hope that helps
Ohh, and don't forget to put the jumpers BACK when yer done !
haha.... BTDT
JB