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..... was **ME**
I was a dunderhead and failed to follow the directions when installing. I did not format the Boot Camp partition correctly and as a result Windows would not install. I deleted the partition, started over, this time reading the instructions (duh), and it all worked perfectly.
By the way, my two-CD method works perfectly. That was not the issue at all. And it isn't that the Mac won't accept an upgrade copy. It really doesn't care. The issue is that, while Windows is installing, you have no way to eject the WinXP install CD to put in the Win98 CD that verifies your right to use the upgrade disk. This is because of the SuperDrives that Apple uses; they have no external eject button. They only use the software implementation, and with no drivers installed, they don't eject. By hooking up the external CD drive, there is no need to worry about that. The Mac, at the machine level, sees both drives and Windows, even before drivers are installed, sees them both, too. Honest, it works perfectly.
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