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If you installed SE on Win 98, then here is a link to a generic USB driver that should work with your HD. If at some point you decide to install a newer OS or go dual-boot, you can always partition the HD so you don't lose any storage. Best of luck.
Many Verbatim hard drive models with a FireWire interface come “Mac formatted” – pre-formatted for immediate use with Apple Macintosh computers running Mac OS. They are formatted as HFS+, the preferred format when using the drive exclusively with Mac OS computers. Note: A Mac-formatted drive will not mount on a Windows PC. If you plan to use a Mac-formatted hard drive only with computers running Mac OS, you can leave it formatted as it comes from the factory. However, if you plan to use your hard drive with computers running Windows, or with both Mac OS and Windows computers, you should reformat your Verbatim hard drive before saving data to it. Generally, for use with both Mac OS and Windows you should format to FAT32, and for use strictly with Windows you should format to NTFS. More information about these two format types is given below. FAT32FAT32 is compatible with the following Windows operating systems: Windows 98, Windows 98 SE, Windows Me, Windows 2000, Windows XP, Windows Vista. FAT32 can also be read by Apple Macintosh computers running Mac OS. Limitations: Maximum file size is limited to 4TB. Furthermore, using the formatting tools included with Windows 2000, Windows XP, and Windows Vista users will not be able to create partition sizes larger than 32GB (though they can access these larger partitions). This limitation does not apply to other supported operating systems. Furthermore, Verbatim provides a FAT32 format utility (see further below for download instructions) that eliminates the 32GB partition limitation. FAT32 is a good choice if you’ll be using your Verbatim hard drive with older computers running Windows 98, Windows 98 SE, or Windows Me, or if you’ll be using it with both Windows and Mac OS computers. NTFSNTFS is compatible with the following Windows operating systems: Windows NT, Windows 2000, Windows XP and Windows Vista. NTFS usually results in higher performance than FAT32, and will permit users to create partition sizes larger than 32GB, and file sizes larger than 4TB. Limitations: NTFS is not compatible with Windows 98, Windows 98 SE, Windows Me, or Apple Macintosh computers running Mac OS. NTFS is a good choice if you will be using your Verbatim hard drive only with one or more computers running Windows XP, Windows 2000 or Windows Vista. This is also a good choice if you plan to store files larger than 4TB, such as digital video files.
To access an external USB drive in Windows 98, you need to be using Windows 98 SE (Second Edition). Before SE, there was no USB support in Windows 98.
Even then, you will probably not be able to access the full 160Gb of the hard drive. Your best bet is to upgrade to a newer version of Windows, such as 2000, or XP. I know that, depending on your hardware, that might be asking a little too much, but to support all these more modern gadgets, you're going to have to give up on 98 eventually.