He's not asking whether he should do an upgrade installation versus a clean installation. He's asking if using the upgrade version of Windows XP will ask for verification of a previous OS.
The answer to your question is yes. When doing a clean install, it will ask for you to insert your Windows 98 disk for verification purposes and the Windows 98 upgrade disk will suffice.
It will work the same way as it did when you upgraded to 98 from 95.