You want to format your drive...but you can't, Insufficient memory?? try this...
Recently I tried to format my hard drive, previously it had Windows 98 2nd Edition, but everytime I tried to format, I got the error "Insufficient Memory", baffled for a while, I found that if you delete the partition using FDISK (in my case it was my primary partition) which was running from my floppy drive, then create a new partition in its place, next time you go to format the hard drive, there shouldn't be any problems.
I found that this seems to be an increasingly occuring problem with Windows 98 2nd Ed. There are other ways to combat this problem, one which includes (from the A:\ Dos prompt) typing FORMAT C: without the inclusion of the "/s", this apparently (although I have not tried this method) will use less memory for the format as you are not installing the system files, and then once that is complete you can properly format using the dos command FORMAT C: /S.
Personally I would stick with my initial idea. Other methods include personalising your bootup disk which will reduce the memory when attempting to format. This though requires editing files personally to acquire the desired result.(nore about this method is available on the net - a last resort)