Having spoken to the forums resident but painfully shy old dosser, (aka Scrumpy Jack), he suggests this :
Boot with the 98 CD then remove it and put the recovery CD in and see which files are on it, find the drive letter its on and type DIR /P to explore the CD.
Look for a file called setup.exe or recover.exe or similar.
Then type that filename and hit the enter key and hopefully it will start installing windows.
He says the TOOLS/TOSCDROM.SYS is only there to load the CD drivers so you shouldnt need that as the 98 boot CD has already done that.
Hope that fixes it as I havent been able to find anything else