If you're referring to passwords stored in relation to websites, then download
THIS and it will allow you to obliterate all those cached logons / passwords for webforms. You need to activate this option by ticking the "tickbox" as it is (sensibly) disabled by default
If you're talking about "network" passwords, they're in a file in the windows subdirectory, extension PWL -- one for every user on that W98 machine. Delete those PWL files and they're (network passwords) gone too