First of, your users pc must logon to the same domain as you are and remote registry service must be running on both system. You will also need to have administrative privileges of the domain.
Generally, I found it problematic in most cases when using poledit for remote administration. Instead I use a login script to update remote policies.
This is what I usually do.
1. Using poledit, create a policy for win98 users and save it as a file, policy.pol.
2. Using notepad, create a registry update file to update or insert the following registry key value, and save it as a update.reg file.
REGEDIT4
[HKEY_LOCAL_MACHINE\System\CurrentControlSet\Control\Update]
"NetworkPath"="c:\windows\policy.pol"
"UpdateMode"=dword:00000002
3. Create a login script for win98 user that copy the policy.pol file into thier local directory c:\windows\policy.pol. And also to run the update.reg to merge the registry to they local pc.
The first time they logon to the network, the script will update the registry and copy the policy into local drive. On their next reboot, the policy you created will be effective. Once you ensure all user have the updated policies, you can remove the update.reg from the login script. But maintain the copypolicy script as it's will be necessary if you need to do changes from time to time and ensure that user will always have the correct policy.
