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The full version of which, Windows 98, or XP home?
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XP home
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As for not being prompted for the CD, I think that is only supposed to apply if you are upgrading that partition to XP (From Windows 98).
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So this maybe the reason why I was told it was not a good idea to do an upgrade install
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If I understood things correctly, on a multi-booting setup,you'd need the older Windows 98 disk during the installation setup.
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When I did a multi-booting setup all I did was boot 98 and ran setup off the XP CD and it did the rest itself without needing the 98 CD.
Anyway I let Ian take-over as he can explain things better than I can.