There is a bit of a mismatch with that video card and sound card. The Vortex 2 card won't work properly with Windows XP, since the 9x era was the last officially supported operating systems for A3D (Vortex) sound.
Conversely, the BFG 6800 is better suited to Windows XP. While it can work under Windows 98, you're more likely run into compatibility issues with games.
What type of P4 do you have? If it's a Northwood era P4, I'd probably swap out the GPU for a GeForce 4 or FX and make it a Windows 98 machine.
If it's a later model P4 (Prescott/Cedar Mill), you could replace the sound card and make it an XP machine.
In neither case is there a reason to install DOS.