Do you have the Clients for Microsoft Netowrks protocol bound to the 98 machines NIC?

Are both machines part of the same workgroup?

Can you ping the 98 machine from the XP box?

If you can ping the 98 box from the XP box, then from the XP box; Goto "Start", "Run", type the IP address of the 98 machine followed by c$ and hit enter.

e.g. \\192.168.1.14\c$

What happens?