could you explain that a bit more so I can understand? Sounds like good advice but makes no sense..

Did you read my post?

Did you burn the iso to the cd, or did you burn the image to the cd.

If the cd contains an iso file, you've done it wrong, and thats why it wont boot.

From bios, the boot feature is under BIOS Features. Set it to "CDROM, C, A" (if it supports CDROM).

Ok yes I burned an iso to the CD.. but it when I download ubuntu off the site thats what it gives me. I know I might be annoying now but can somone tell me what I should really be doing with the burning to CD process? I already understand the booting thing now.
BIOS Features on my old pc has C,A also.

An ISO file is a byte for byte image of the CD. Windows XP can not natively create a bootable CD from an ISO file. You can not drag N drop or extract the files to be burned first. You need Roxio, Nero or a free utility like isorecorder. With Roxio or Nero you select "burn from image" under the file menu. Once the CD is burned you can view its contents and if you see files and directories then it is good.

OK I have Roxio and I was not using the usual XP burning thing. I will try some of the apps that you said.

Re-burning will make no difference if your pc is unable to boot from cd. You need to find out if your bios can be updated by flashing, if yes you need to download the updated bios and the related flashing tools/instructions and flash your bios.

WARNING: Make sure you follow all the instuctions to the letter when flashing your bios, if you get it wrong it could kill your system.

I'm not as learned in Linux as many of the guys here are. But there are some things that I would consider before continuing:

1. If your computer's as old as it seems, how well will a newer Linux OS work on it? Does it have enough processing (at least 586) and RAM to run the newer desktops? If you blow your Windows 98 OS out, and can't get a Linux desktop working, do you feel that you can use the Linux CLI effectively? If not, you may find yourself without a computer that suits your needs.
2. Since it appears you're not adept at flashing your BIOS, I would highly recommend you find personal technical help with this procedure, rather than trying it yourself, at least for the first time. Otherwise, you might find yourself in a real world of hurt.

I live in Windows for my job, but I play in Linux. Please don't take anything I've said as an indication that you should not give Linux a shot.