OK. It sounds like there are some corrupted files (probably drivers) on your system or a corrupted registry.
You could try the following;
Open up to your desktop and go "Start" "Run" and type in SFC. (Make sure no other programs are running).
This command will scan the system files on your hard drive and ask to repair any files it believes to be damaged.
All you have to do, is put your WIN98 cd in the drive and when Windows asks to repair a file, click yes! It is recommended that you "Backup" the existing files when this operation takes place and again, the program takes care of this for you.
If this fails, it may involve a complete wiping of the disk (re-format) and a clean install to resolve the problem.
I hope this helps.
Good Luck!