If you have the choice, as you indicated you did, I would stick with XP Home, as Pro has a lot of stuff which you really don't need. Save you disabling what you don't need after install.
Like you said you know the score about upgrading an OS installation, so I won't go on about it to you. However I might add one piece of advice, one thing which sometimes can really bork an upgrade to another OS up, is if the version of directX on the original OS (in your case 98) is newer than the one which you are installing. So if 98 has directX 9 installed I would suggest having a think whether or not you can remove it or not.
Like I said though, probably won't cause you any problems, but something to think about nevertheless.
Let us know how it goes.
SPINNER
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