Poah! Big trouble in little china ...
To point #1 Windows no longer loads:
Is there no way to start it in "Safe mode"?
Does scanreg run?
#2 Suse partition too small.
1.6 Gigs is really too small to live and too much to die
#3 -> think it´s a little too complex to describe it in short sentences
#4 Sound doesnt work with Suse. -> should not be your major problem - concentrate on a runnin´ system. The goodies will follow.
#5 Need to Free up disk space.
If you have a running suse, you could deinstall with yast -> software -> install/deinstall software
Gimp is a good idea, k3b burning tool can be removed, too
#6 Maybe the problem that could solve it all
YES! It would be possible - and it´s (for my suggestion) the only smooth way to help you out.
Try this:
1.) Get a Knoppix-LiveCD,
2.) boot your Laptop with it
3.) connect to the Mandrake computer (hope your friend knows how to)
(remember to use a crosslink-cable or a hub/switch for your connection)
4.) copy all files you want to safe to the Mandrake-PC
5.) Setup Suse new - kick off win 98 - or let suse make the partition smaller to keep the files
Other way
use g4l (ghost4linux), boot the floppy, connect to a ftp-server (maybe your friend mandrake box),
backup your win98 there.
AND
never try changes to your system without a backup!!! !before!
Greetz
Pete