I am certainly not going to try the scenario you describe here with anything already installed on the first drive. win98 is basically not much more than an enhancement of 95, which is just Win 3.1 remixed -- and that makes it nothing more than DOS with a GUI. AFAIK, DOS has never been able to mount C: on anything other than what it recognizes as the first hard drive, and at the very least that is where it will place its MBR. Fortunately, we are not faced with such considerations in this particular case. (Referring to your webpage here, I don't recall any OS/2 LVM capability, up to and including Warp4 FP13, which is when I switched to SuSE. Did I miss something in all those fixpacks? Or even earlier?
I don't recall LVM ever being on Warp 4 either. I used it on the last version on Warp Server that I had before moving to RH 6.2 (I had to hack the installation disks for Warp Server with files from Warp 4 to get it to install after IBM insisted that not installing wasn't a bug and that I had to purchase a service contract if I wanted them to tell me how to install it). Jeff