Yes I have WIN 98 and installed a 60GB drive, although I recall at the time there being something about a 64 GB limit, but I'm not sure now.
The real limitation would be your system's BIOS and whether that allows greater than 32GB. A general rule is somewhere during 1999 the mobs's and BIOS's will recognize over 32 GB. Even if it's an older BIOS, if you have or are able to do a BIOS upgrade (flash), it may bring it up to snuff.
Even if your BIOS is limited, the software that comes with the HD, or you can download, can install a BIOS overlay to fool your system that the HD isn't larger than 32GB, yet you get full use of your 60GB drive.
