Currently at home, with lots of time on my hands, so.......
I figured I'd try installing Windows 98 (second edition) on an older IBM Netvista (which came with XP).
1. Got me a bootdisk and powered up into MS-DOS and did a complete FDISK etc. and wiped the hard drive clean.
2. At this point my USB mouse and USB keyboard were working fine.
3. While in MS-DOS, reformatted the hard drive as FAT32 (500GB drive). That went well.
4. Put in the bootable Windows 98se disk and shut down/restarted the computer.
5. The install disk was recognized and a dialog came up asking if I wanted to continue setup.
6. Tried to move the cursor to the "continue" button and it wouldn't move.
7. Tried using the keyboard to go to the "continue" button and it wouldn't move.
Okay, so the USB ports are not working, either because they just won't work, or they won't work until Wndows 98se is installed.
So I unplugged my USB mouse and keyboard and replace them with a PS/2 mouse and keyboard.
Repeated all of the above steps just to be sure, and again no mouse or keyboard at steps 6/7.
I'd appreciate any suggestions as to what's going on. I really thought the PS/2 ports would be working.