When trying to defrag the hard drive, it will jump from 1% to 0% - back and forth. I have reinstalled Windows (98 second edition), but this has not fixed the problem. Is there anything else I can do, short of reformatting the hard drive, to fix this?
The problem you described seems to be related to some other issues than the OS or the defragger. Maybe you are running an application that locks some files and the defragger cannot handle it? Do you have other apps starting before or while you log on?
Also, did you run a scandisk to check your volumes for defects? I actually don't think that reformatting the hard disk will bring any solution to your problem.
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