All the above, plus
Avoid a lot of fiddling around and downloading from MS by using the UNOFFICIAL Windows98 Second Edition Service Pack 2.0.1 (Freeware) from
http://exuberant.ms11.net/98sesp.html
It contains all Windows98 SE updates from Windows Update site and more.
Installation order:
1 - Install Windows 98 SE
2 - Install IE 6.0 SP1.
3 - Install DirectX (9.0c).
4 - Install all latest drivers of your hardware
5 - Install MS Office.(And any other programs like norton/etc...)
6 - Install SE SP 2.0.
7 - Reboot.
8 - Install critical updates from WindowsUpdate(if there are any, unlikely)and update virus signatures and software.
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"Bother," said Pooh as he struggled with /etc/sendmail.cf, "it never does quite what I want. I wish Christopher Robin was here."