Uncanny - I have a D865GBF/D865PERC and I had the same problem. My computer was a mice-living-in-it restoration, so I thought that after a while, the computer was somehow damaged. I stuck a pre-partitioned SATA drive in it (80 gb split FAT32 98Se and NTFS XP) with a PATA optical on Secondary Slave. I was getting the exact same errors you were. After reformatting and repartitioning, I was about to give up and make it an XP only machne, but I decided to try to load the OS on an old PATA hard disk. And it worked.

Then I came across this thread.

I changed my BIOS settings to SATA P0/P1, PATA Sec, stuck in Win98, and got to installing. The built in graphics are giving me some feedback, sound works, and most importantly, I've got no IDE controller errors. Device Manager lists:
-Intel(R) 82801EB Ultra ATA Storage Controllers
-Primary IDE controller (Dual FIFO)
-Secondary (same as above)

To anyone out there experiencing this issue 8 years from now (lol) the drivers I used came from this site:

https://driverscollection.com/?H=D865GBF&By=I … ndows%2098%20SE

It doesn't like the Intel Graphics KCH driver for some reason: half the time it will boot 98SE blank, other times it will find new hardware and immediately lock up. I tried an MSI nVidia 180 (256 Mb) but it would not POST so I put a SILURO GF4 64 Mb AGP and it booted straight away. I uninstalled the integrated drivers and rebooted without the AGP card in there to a driver-less (well, VGA compatible) system which is stable and will play DOS games (even sound! No FM though) so if I can't find the intel integrated graphics drivers for this board, I'll throw in the 64 Mb AGP card, load XP and call it done.