I did run into a similar issue on a friends computer. I had installed Windows (again!!!) and knoppix and all was well until she decided to start rearranging drives and partitions and things.
Long story short, what I learned is that:
1 - going back very far in Windows ancestry, if Windows is around your computer, your MBR stands a good chance of getting corrupted. I don't know when it does it or why, but Windows will rewrite and ruin the MBR, so if it decides, it will 'inadvertently' make your Linux unbootable.
2 - Windows, I believe, MUST be installed on the Primary Master hard disk in order to work properly. Matter of fact, the majority of the time, without going through major hoops, Windows also needs to be the FIRST OS installed on the hard drive. Installing it or reinstalling it or repairing it or doing just about anything to or with it at a later time, will corrupt the MBR.
(The major hoops I refer to involve copying the Windows boot sector (512 bytes, freshly installed) to a file, which is then placed somewhere in the C:/ drive, and then when you edit GRUB or LILO, you give the bootloader the path to that file, so that it can boot Windows without needing the MBR.)
SOunds like what happened to you was GRUB tried to boot Windows from the slave drive; Windows didn't like that. Windows then a) didn't boot, and b) borked the MBR.
I know my input here probably doesn't help you accomplish what you're trying to do, but what I think I'm trying to say, is if you now want a windows around, besides your running Linux installations, you probably need to start with a fresh hard disk, install Windows on it on partition 1 and make sure it works (OR leave that Win98 hard disk as primary-master, THEN boot a Linux LiveCD and edit your Linux-OS's GRUB to boot the Windows and your Linux wherever it is connected now, and install the GRUB to the MBR of the Windows hard disk (primary-master).
Did this answer anything for you, or have I totally gone in circles?