It sounds like something similar that happened to me...
I was effing around, and then got myself in some poop. (wow, self-censorship eh?)
Anyway,
I took the older drive out, completely and made sure the newer (the XP) drive was set as a master.
Now try to boot off that.
If you're having trouble try repeatedly tapping F8 to get into Safe Mode just after the BIOS finishes loading Windows, just before that "Windows XP" loading screen.
Hopefully we're laughing.
If not, you'll probably need the XP CD.
If you are laughing, set your older drive as a slave, and add it back into the system, and launch the BOOT MENU (it can be an array of button pushes...watch for it at POST), now boot to your newer (XP) drive.
Still lucky?
If not, grab that CD again...but unless the 98 HDD overwrote anything on the XP HDD, you should be ok.
Let us know, yeah?