10 GB should be pretty much enough for a number of games, the biggest space a game of Win98 era could take is 1 GB, 600 MB more probable. 8 GB hard drive was all I ever used on my old Win98 machine, which was sufficient for everything.
Also some older Win 3.1 / Win95 games might have troubles with 256 MB RAM, 64 might be safer option in Win98 for backwards compatibility.
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